DeRisk works with organisations that are making investments and businesses happen and thrive in frontier markets, including:
Private equity managers and limited partners
Frontier market businesses
Corporate finance advisors
Development finance institutions
High net worth individuals and family offices
Social and impact investment funds
Some examples of DeRisk's recent work:
Region: Southern Africa
Business: SilverStreet Capital
Funds raised: USD 350m
The UK and Luxembourg-based private equity fund manager, SilverStreet Capital, established the Silverlands Fund to invest in agricultural business in Southern Africa. SilverStreet raised USD 350m from international limited partners and the Overseas Private Investment Corporation (OPIC). Given the fund's focus on agribusiness in Africa, SilverStreet investors were keen to ensure that the funds investments were protected against harmful government actions. DeRisk worked with both OPIC and MIGA to put in place a master contract of political risk insurance for SilverStreet Capital. The master contract is an innovative insurance contract that locks in OPIC and MIGA insurance capacity and pricing to cover future investments by the fund. OPIC will insure 40% of each investment, while MIGA will reinsure 60%.
The Silverlands Fund plans to reach 500,000 small farmers over the next 10 years, leading to an estimated increase in total food production of over 1 million tons per year. The fund aims to accomplish this by investing across the agricultural value chain in sub-Saharan Africa in a variety of segments, including fruit, grains, soya, sugar, poultry, and livestock.
See SilverStreet Capital's website for more information.
Business: Azura Edo IPP
Funds raised: USD 900m
Amaya Capital is the main sponsor of the Azura-Edo IPP, a 450MW open cycle gas turbine power station, which is the first phase of a 1,500MW power plant facility under construction near Benin City, in Edo State, Nigeria.
The project sponsors advised by DeRisk and covered by MIGA include the founding and lead sponsors Amaya Capital as well as American Capital Energy & Infrastructure (recently bought out by Actis), the Africa Infrastructure Investment Fund 2, Aldwych International Limited alongside Pan African Infrastructure Development Fund 2 and ARM-Harith Infrastructure Fund.
The lenders advised by DeRisk and covered by MIGA include global mandated lead arranger Standard Chartered Bank, joint mandated lead arranger Rand Merchant Bank, The Standard Bank of South Africa, Siemens Bank, and KfW. Other lenders on the transaction included co-lead DFI arrangers International Finance Corporation (IFC) and FMO and First City Monument Bank as local loan arranger, DEG, Proparco, Emerging Africa Infrastructure Fund, ICF Debt Pool, Swedfund, CDC and OPIC. The debt facilities included a commercial tranche backed by MIGA PRI and IBRD PRG products, a DFI tranche, a local Nigerian Naira tranche and a DFI mezzanine facility.
Ground-breaking of the Azura Edo IPP - led by the President of Nigeria, Goodluck Jonathan - took place on 10 October 2014. Azura reached financial close in December 2015.
Business: Takoradi Renewable Energy Ltd (TREL)
Funds raised: USD 9m
The UK/Belgium renewable energy firm, Africa Renewables (AfriRen), established a biomass extraction and processing business in Ghana to supply power plants with sustainable sources of biomass. USD 9m in both external debt finance and shareholder funds were required for the first phase of expansion. Investors considered MIGA coverage – and particularly its detailed due diligence process – to be an important safeguard as it looks to expand operations across West Africa. DeRisk worked with AfriRen and TREL to cover the entire investment amount with MIGA insurance. AfriRen is currently working to expand the business in Ghana and elsewhere in West Africa.
See AfriRen's website for more information.
Please contact us for information on other transactions that we have completed.