MetaConsult

nal equity fund that operates in Europe, the UK, North and
South America, Asia, Australasia and Africa, investing in major assets for
secure, long-term yields from large pool of capital from big Western public
pension funds. It is looking for better returns in emerging markets than it
can get in its home markets. Areas of interest The principal sectors in which the funds are invested are:
• power generation and utilities;
• mining and resources including oil and gas;
• infrastructure and all forms of real estate; and
• shipping and marine. The Investor’s Edge The Investor differs from many other equity and hedge funds by:
▪ making all-equity investments, rather than short-term debt-funded investments followed by asset sale or refinancing;
▪ sharing 50% of ownership and all profits with partners, developers and sponsors, versus the market norm of 10 – 15%;
▪ investing for very long periods, 20 years or longer, often to 35 and 40 years, which make equity costs to write off capital and provide a return on equity relatively low;
▪ having lower yield expectations and an exceptionally low cost of capital, through its long-term, all-equity investment model;
▪ providing fixed terms and yields over the investment term;
▪ not taking any form of security over an asset, which normally means no mortgage, loan, lien or charge over an asset; and
▪ taking no part in asset management decisions. Risk Management Investor adopts a suite of risk management strategies to ensure the security of an investment. These include ensuring:
▪ investment in secure, long-term equity assets of a party or entity rated investment grade Standard & Poor’s (minimum BBB rating) or Moody’s (minimum Baa rating);
▪ in the absence of the above, a third party guarantee from an investment grade rated (IGR) institution of the periodic lease or coupon payments, not the capital, as the investor needs the income to pay pensions. For this, the Investor accepts guarantees from:
➢ African Development Bank (AfDB),
➢ Afreximbank,
➢ Africa Finance Corporation and
➢ African Trade Insurance Agency
▪ direct disbursement to Asset owner or approved large EPC head contractor or multiple head contractors. Kindly see A above. Processing 1 Project owners:
a. Application Letter
b. Board Resolution authorizing person(s) applying for the program
c. sign NDA with Local rep
d. submit Executive Summary and Mandate to Local rep to assist them raise funding. Application Letter
f. Board Resolution authorizing person(s) applying for the program
g. sign NDA with Local rep
h. submit Executive Summary and Mandate to Local rep to assist them raise funding.
2 Local rep:
a. reviews Executive Summary and clears it for submission to Investor. issues project owners with third party insurance information package. submits Executive Summary to investor
3 Investor reviews Executive Summary and issues MOU/Term Sheet
4 Project owners pay $150,000 for initial Structuring costs on accepting MOU/Term Sheet.
5 Project owners submit third party insurer information package and pay processing fees.
6 Third party insurer undertakes underwriting procedures, approves project and project owners pay initial premium.
7 Project owners submit third party insurer approval to Investor
8 Investors approves project.
9 Project owners pay final Structuring costs, which generally amount to a maximum of 0.3% of the total amount of the investment, in instalments. Duration
It takes 16 weeks to close a deal when all goes smoothly. Cost of Program
1
Non-refundable processing fee
2
3
Structuring fees as in H4 & H9 above. Cost of insuring coupon payments payable to investment grade insurer. This can be dispensed with if the off-taker is an investment grade company. In this instance, the investor will sign the off-take agreement with the off-taker. Repayment
1. Project owners pay third party investment grade insurer which in turn pays the coupon to the Investor; or
2. The investment grade off-taker pays the investor directly. K. Eligible Applicants
1. private companies
2. Governments
3. Municipalities para-statals
L. Local Rep
MetaConsult Limited
Tel: 030-242 7980/020-146 6700/ 024-393 6779
Email: [email protected] /
[email protected]/
[email protected]