Services
PROJECT FINANCE ADVISORY
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Project Packaging - We leverage our extensive project finance experience and knowledge for the benefit of project sponsors and promoters to "make deals bankable" for development financiers and other financial institutions.

 

Investors and Financiers - Our affiliate investors comprise of African institutions such as African Development Bank, Development Bank of Southern Africa, National Empowerment Fund, Industrial Development Corporation, South African commercial banks & global institutions such as International Finance Corporation, leading global insurance companies, hedge funds, pension funds & large international private equity groups.

 

Client Based Solutions - We offer a full range of investment banking products & services to privately held and publicly traded companies throughout Africa. We are focused on, and committed to, serving large and middle market companies and have obtained a strong reputation for client dedication, innovative & effective transaction execution & integrity.

 
CAPITAL RAISING
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Afris Capital provides access to equity-based capital to both privately held and publicly traded companies with typical investments ranging from ZAR200 - 500 million. Our network is comprised of partners and affiliates located in the Development Finance Institutions, United States, Canada, and Europe who invest throughout the entire life cycle of the business development process - from early stage and growth capital to later stage investments.

 

We work to deliver maximum flexibility in supporting the equity requirements of our clients allowing us to meet the needs of companies at all points on the financing spectrum. In conjunction with our investment banking arm, Afris' private equity division provides management with direct access to capital so that they may expand into new or existing markets, consolidate industries, fuel internal growth, or make strategic acquisitions.

 

Afris Capital is also able to arrange a wide variety of debt instruments for its clients. This includes junior and subordinated debt, convertible debt, debt with guarantees and options, and traditional senior debt. We believe that in the current environment, depending on the company, that the shortest route to "accessing capital" is often through the debt markets.

 

We focus on the individual needs of our clients and develop capital structures that allow for maximum flexibility. Our experience includes the arrangement of straight debt, deferred interest notes, interest bearing notes convertible to equity, interest-only as the convertible component, cash-flow financing, and draw-down accounts. Afris Capital has deep experience in arranging debt for our clients and works to find the instrument that most precisely satisfies their needs.

 

A breakdown of Afris Capital’s capital raising services offering is given below:

 

Acquisition finance &
Corporate debt

All classes of debt to fund corporate activity especially Mergers & Acquisitions

Equity capital / IPOs / placements & rights issues / MBOs

We raise equity capital for companies (listed or unlisted) and are able to float private companies. We can also raise capital for management buy-outs.

Debt capital markets

Subordinated debt
Mezzanine debt
 

We raise subordinated or senior, fixed/floating or structured, plain vanilla debt in the capital markets for the acquisition, development or refinancing of all classes of assets. Our capital markets ability gives Afris Capital’s clients access to low cost alternatives to bank finance.

Debt/Equity hybrids
Convertible bonds

 

Securities that are not straight equity or debt, have the subordination and regulatory capital features of equity but carry a debt like coupon in the structure, whether or not in combination with an equity feature.

Global bonds / MTNs for governments & corporates

Straight, non-callable debt issued by governments, international and government agencies, corporates and non-government rated issuers.

Secured & structured finance

For an optimal financing outcome, we can arrange various forms of structured financing, including cross-border leasing, securitisation, asset backed securities and structuring of cash flows, assets and liabilities.

Securitisation

We can package loans and stocks to create debt securities for capital markets. This provides a low cost source of funding which allows for greater choice and can facilitate better capital management.


Project Finance

Project Finance involves raising debt for specific projects, where the lenders look to the project’s cash flows for repayment of the principle and interest. Recourse is wholly or largely limited to the project assets and not to the balance sheet of the project sponsor/s. This type of finance is used principally in connection with financing for infrastructure, property and natural resources projects.

 
CORPORATE FINANCE
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Afris Capital provides strategic corporate advisory services in addition to our other investment banking offerings. Depending on the depth and scope of the engagement, Afris Capital leads certain client engagements with advisory services. This approach is based on the conviction that valued, long-term client relationships are more effectively built from advisory rather than transactional relationships. Our teams of investment professionals specialize in given sectors and regularly keep abreast of trends and opportunities within these sectors, uniquely qualifying Afris Capital to serve in an advisory role to both our privately held and publicly traded clients.

 

Roll-Up Strategies - Certain business strategies call for an immediate presence in a technology, vertical, or geographic market place. The fastest way is through an acquisition or a series of acquisitions within that market. Afris Capital has numerous resources to perform extensive acquisition searches and develop a roll-up strategy that enables our clients to identify the right acquisition targets and the appropriate strategy with which to approach them.

 

Cross-Border Transactions - For many companies, moving into the foreign marketplace can be extremely risky. At Afris Capital, our network and familiarity with certain countries allows our clients to sidestep foreign market barriers. Our insight into these markets allows our clients to navigate the difficult components that typically comprise foreign acquisitions and alliances.

 

Restructurings - Sound businesses and markets can become financially unstable in a changing economy. Afris Capital leverages legal, accounting, and financial resources to assist companies in re-engineering their balance sheets. We conduct strategic reviews with our clients that lead to restructuring plans for existing debt and equity. We develop divestiture strategies where appropriate in conjunction with these restructurings that include planning the sale, valuing the business, identifying the buyers and negotiating and closing the sale.

 

Strategic Advisory - We assist our clients in realizing their full potential through strategic planning for managerial productivity and profitability. Our operational improvement services provide insightful analyses and help identify unique solutions for growth issues. Through assisting our clients in the negotiation and implementation of strategic alliances and joint ventures, we help them maximize synergies and improve shareholder value.

 

Industry Research - Afris Capital believes that thoroughly understanding our clients' industries is key to providing sound strategic and financial advice. Accordingly, we perform thorough industry research and analysis for every transaction that we are engaged on. We believe that those industries that continue to evolve at a rapid pace require special consideration and therefore research and stay abreast of developments in software, medical devices, wireless, telecom and media, and energy.

 

Mergers & Acquisitions - Afris Capital provides both advisory services to both large and middle-market companies whether privately held or publicly traded. Our fully staffed teams are highly qualified professionals, who leverage their experience and industry knowledge to ensure that our client's objectives are met.

 

We are a full-service group with experience in mergers, acquisitions, divestitures, strategic alternatives, recapitalisations, restructurings, spin-offs, management buyouts, joint ventures, and minority investments.

 

Because we view Mergers and Acquisitions (M&A) as an important part of a client's overall growth strategy, we provide firm-wide commitment and senior-level attention across the organization to effect successful transactions. We develop and implement integrated M&A solutions by coordinating and leveraging our execution skills, structuring expertise, comprehensive financing capabilities and insight into capital markets.

 

Our corporate finance professionals excel at identifying industry-changing opportunities, which help our clients position themselves as market leaders. Our focused industry knowledge combined with wide-ranging relationships has resulted in our leadership position in Mergers and Acquisitions advisory services.

 

The firm applies its transaction experience, technical expertise, and extensive industry research throughout the process, including valuing the potential targets, developing bidding strategy, structuring the offer, and executing the transaction.

 

In addition, we assist management teams in structuring, negotiating, and financing management buyouts and privatization transactions. We carefully select each sale or buyer representation engagement, enabling Afris Capital to dedicate the right transaction team to each engagement.