Africa Finance Weekly : Egypt’s $1.5b Islamic Sukuk I EFG Hermes $20.87m bond I Kholo Capital first close I Norfund and Ethos's $25m debt investment.
Plus Mediterrania Capital Partners leads $71.9 million investment in pharm company, South Africa's Sasol launches new venture fund.
In today’s Africa Finance Weekly a roundup of interesting news, trends, and dealmaking:
Egypt’s first Sovereign Islamic Sukuk reaches $1.5 Billion in value.
Vodafone Group Plc has completed the transfer of its 70% majority stake in Vodafone Ghana.
Palm Hills Developments and EFG Hermes ("EFG"), closed a $20.87 million securitised bond.
Kholo Capital has completed its first close for its Mezzanine Debt Fund I.
Egypt’s first Sovereign Islamic Sukuk reached an impressive total value of $1.5 Billion.
The Islamic Sukuk (“Sharia-compliant” bond) was oversubscribed by 4x.
The US -denominated sovereign bond has a yield of 11%.
The bond’s acceptance was reflected in over 250 investors across global markets.
The proceeds of the successful bond issuance will be used to fund public projects.
M & A :
Kenya’s diversified trading firm Car & General (C&G) is seeking to re-acquire diesel engine manufacturer Cummins C&G Limited (Cummins CG) with a share purchase agreement with CMI Africa Holdings BV (Cummins BV) to buy the remaining 50% stake to give it full ownership of the distributorship business once again.
South Africa’s Sibanye-Stillwater has acquired a 19.9% stake in Australian metal-based producer New Century Resources, at an offer price of A$1.10, representing a large premium, the company will pay up to A$120 million (R1.5 billion) if the deal is accepted.
Vodafone Group Plc has completed the transfer of its 70% majority stake in Vodafone Ghana (Ghana Telecommunications Company Limited – GTCL), to the Telecel Group.
Cross Switch an African payment company has acquired a 50 % of Vantage Payment System a Moroccan fintech company.
Fixed Income :
South Africa's 10-year government bond yield traded around 10.12%, down from a nearly two-month high of 10.26%.
Egypt-based leading real estate developer Palm Hills Developments and EFG Hermes ("EFG"), the leading investment bank franchise in Frontier and Emerging Markets (FEM), have closed a $20.87 million (EGP638 million) securitized bond. The issuance is structured consists of Tranche A valued at EGP105.27 million with a tenor of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS), Tranche B valued at EGP232.87 million with a tenor of 36 months and a credit rating of AA from MERIS and Tranche C valued at EGP 299.86 million with a tenor of 84 months and a credit rating of A from MERIS.
Private Equity :
Mediterrania Capital Partners, private sector financing institution Proparco, development finance institutions FMO, and DEG have invested $71.9 million for a minority stake in leading pharmaceutical company Laprophan. The transaction led by Mediterrania Capital Partners is subject to regulatory approvals.
Leading investment management firm Third Way Investment Partners, in collaboration with Mahlako Energy Fund and Mergence Investment Managers, has announced an investment in Aventro Investment to acquire shares in the flagship 100MW Redstone Concentrated Solar Power Project.
South African Based fund management company Kholo Capital has completed its first close of R870m in commitments for its Mezzanine Debt Fund I which will provide long-term mezzanine debt investment in support of growth, job creation, and advancement of transformation targeted at mid-market companies with operations in Southern Africa. Investors who have committed to the first close are 27four Black Business Growth Fund, RisCura, the Mineworkers Provident Fund, the National Fund for Municipal Workers, and Thuso Partners.
Private Debt :
Egypt’s leading private sector bank Commercial International Bank (CIB), and Dutch entrepreneurial development bank FMO, have signed a credit guarantee agreement, worth $50 million, to cover loans granted to the Bank's micro, small, and medium enterprises (MSMEs).
UK’s Development Finance Institution (DFI) and impact investor, British International Investment (BII), has announced a $50 million investment to Invictus Trading, a subsidiary of Invictus Investment and a handling partner of the DAL Group.
The Norwegian development finance institution Norfund and Ethos Mezzanine Partners have made a $25 million mezzanine debt investment in the Nairobi-based Balaji Group ($12.5m each), the largest apparel manufacturing business in Sub-Saharan Africa.
Rwandan digital microfinance provider Jali Finance has raised $3 million in debt financing from Variant Impact Fund.
Egyptian expense management platform Hollydesk has raised $1 million in venture debt from undisclosed investors.
Venture Capital :
Nasper and ARS Holdings have led a significant equity and debt investment in Planet42, a car subscription start-up.
South Africa-based chemical and energy company Sasol has launched a new venture fund called Sasol Ventures that will invest €50 million over the next five years as part of its decarbonization strategy.
Burkina Faso and Benin-based solar kit provider, Qotto have secured $8 million in a Series A equity-debt transaction from a billion-dollar Mauritius-based conglomerate The IBL Group.
Economy Updates :
Zambia’s inflation reached 9.6% in February from an almost 3 years low of 9.4%
The Central Bank of Botswana held its benchmark interest rate at 2.65%, while its inflation fell to a 13-month low from 12.4 % in December to 9.3 % in January.
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