Project Finance

Responsible for all aspects of project finance from idea generation, business plan/feasibility study evaluation, risks/issues identification and mitigation, project structuring and financing, investment evaluation, appraisal and credit analysis, exit strategy, board presentation and credit approval. Result: consistently achieve well structured projects that are commercially viable in their operating environment for over US$500 million in new business. All projects completed on schedule and within budget. Avoid defaults. All paying interest and dividends on time.

Primary responsibilities:

  • Originate, execute, and monitor international project-finance transactions in agri-business, real estate, cement, eco-tourism & hotels, manufacturing, gas, power, capital markets and financial institutions;
  • Prepare comprehensive project appraisal reports analyzing and describing project concept, viability, sponsorship, ownership structure, management, project cost, finance plan, special instruments, e.g., debt-equity swaps, subordinated loans, synthetic issues, loan and equity terms and pricing, marketing, market structure, supply and demand factors and analysis, competition, product pricing and cost, industry trends and analysis, counterparty risks and issues, implementation issues and schedule, technology, equipment, contractors, contractual structure and arrangements, financial statements, financial projections, sensitivity analysis, credit analysis including creditworthiness, legal arrangements including shareholders structure, arrangements, risks and issues, loan, equity, call and put arrangements, overrun financing, country risk assessment, insurance coverage, environmental assessment, as well as risks and issues.
  • Work closely with legal counsel preparing loan and equity investment agreement, shareholders’ agreement, project cost agreement, call and/or put agreement, and other legal documents;
  • Undertake business trips to negotiate investment terms and arrangements and/or raise additional financing to execute project transaction in a timely manner.

Short List of Projects

Project Finance undertaken at the World Bank's International Finance Corporation (IFC), includes:

FIVE 5-STARS HOTEL LODGES IN SERENGETI, NGORONGORO, LAKE MANYARA and ZANZIBAR, TANZANIA
Hotel Development in East Africa Game Reserves:
TOURISM PROMOTION SERVICES TANZANIA & ZANZIBAR LTD.: SPONSOR: Aka Khan Fund for Economic Development (AKFED), Aiglemonte, France. Project Sizes: $33 million and US12 million. PROJECT LOCATION: Serengeti National Park, Ngorongoro, Lake Manyara and Island of Zanzibar, Tanzania, East Africa.

To improve debt-equity ratio and increase rate of return on a US$45 million investment in 5 hotels and lodges for The Serena Hotel Chain while limiting funding contribution of the sponsor, develop, design and structure a subordinated debt instrument which emulated an equity instrument to cover 20% of the project cost. Use Tanzania debt-equity swaps to fund 30% of local project costs. Result: improved debt-equity structure from 70:30 to 60:40 without increasing sponsors’ equity contribution or project cost which reduce investors funding requirements by 10% or US$4.5 million, and increase ROI by 15% over base case scenario.


FIRST MODERN OFFICE BUILIDING IN TANAZANIA
Corporate Office Building:
INTERNATIONAL HOUSE PROPERTIES, LTD.: SPONSOR: Mitsubishi Corporation, Tokyo, Japan. PROJECT LOCATION: Dar es Salaam, Tanzania. Project Size: $9 million.

To identify solid investments opportunities for IFC account, interview Tanzania country representative for Mitsubishi and determined that an office building project in Dar es Salaam would be a viable business venture. Sold business concept to Mitsubishi corporate heads in Tokyo. Commission feasibility study with Knight Frank of the UK. Locate site in prime real estate area of city. Structure real estate deal and brought in local partners and contractors. Define business requirements, lease terms and tenants per floor to maximize net income in the out-years. Closely monitored construction and project implementation. Result: US$9 million project completed on schedule, US$0.5 million under budget, was 75% rented at completion and achieved full occupancy within one year; achieved 25% return on investment, including capital gain on adjacent lot acquired at the time of investment.


GAS & POWER PROJECT TO SERVE CITY OF DAR ES SALAAM
Gas Pipeline & Power Project:
SONGO SONGO GAS-TO-POWER PROJECT: SPONSOR: Ocelot & TransCanada Pipelines, Toronto, Canada. PROJECT LOCATION: Songo Songo, East Africa. Project Size: $240 million.

The project was to develop 218 kilometers of marine and over-land pipelines to exploit offshore gas fields off the coast of southern Tanzania for power generation to supply the capital city of Dares Salaam. Consortiums from Europe and Canada participated in the project. Other investors included The Government of Tanzania, private and multilateral sources, Multilateral Investment Guarantee Agency (MIGA) and the World Bank. To successfully negotiate IFC’s equity in the project, convinced sponsors and major investors of the value of IFC’s involvement and value added services. Play the role of honest broker and coordinate and negotiate the financing terms of the project. Result: provide loan at market rate and receive 10% preferred equity bearing 22% guaranteed returns for IFC’s account.


AGRIBUSINESS & MANUFACTURING
Beverage Manufacturing:
TANZANIA BREWERY: SPONSOR: South African Brewery. PROJECT LOCATION: Dar es Salaam, Tanzania. Project Size: $160 million.

To revive and expand a major brewery in Tanzania (TBL), identify strategic investors (South African Brewery) and develop comprehensive marketing plan to promote the project. Structure funding employing loans and equity. Advise on marketing and distribution problems, environmental issues as well as challenges raising local financing. Conduct IFC syndication road show throughout Europe for an oversubscribed investment to close financing gap. Result: fully funded US$70 million brewery rehabilitation and expansion plans. Capacity jumped from 175,000 HL to 1.3 million HL. Within three years, recouped entire investment and continue receiving annual dividends at 30% yield.


PORTFOLIO MANAGEMENT

  • Investment review and analysis
  • Mergers and acquisitions
  • Buy and sell decisions
  • Loan work-out
  • Restructuring

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