14 May 2007
Frontier Markets Fund Managers (“FMFM”), formerly known as Emerging Africa Advisers, are pleased to announce the signing of the following 3 deals by the Emerging Africa Infrastructure Fund (“EAIF”). FMFM is a division of Standard Bank Plc and are the principal advisers to EAIF.
Project:
Celtel Nigeria
Country:
Nigeria
Sector:
Telecoms
Description:
Description and Financing Parameters: The financing documentation was signed in February 2007. EAIF has committed a US$ 35 million loan to Celtel Nigeria, the third largest mobile operator in Nigeria. The financing is part of a US$ 350 million financing package for the expansion and upgrading of their entire network. The project will significantly improve access to mobile telephone services throughout the country, as well as increasing competition in the telecoms sector across the continent.
Project:
Eleme Petrochemicals
Country:
Nigeria
Sector:
Industrial Infrastructure
Description:
Description and Financing Parameters: This project forms part of Nigeria’s privatisation programme support. EAIF has committed a US$ 20 million loan to support the privatisation of this petrochemical plant as part of a total financing package of US$ 160 million. The project signed in February 2007. The project will contribute significantly to the rehabilitation of Nigeria’s infrastructure, including through import substitution, privatisation demonstration effects and a community programme bringing power to an area of 50,000 people.
Project:
Ethiopian Airlines
Country:
Country: Ethiopia
Sector:
Transport
Description:
Description and Financing Parameters: This is a unique project signed in April 2007 with first disbursement scheduled to take place in October 2008. EAIF has committed a US$ 36 million loan to the airline expansion project. Ethiopian Airlines is a 100% publicly-owned entity often held up as a model business for other airlines in Africa. The EAIF financing is bridging a crucial gap enabling the airline to purchase additional, new aircraft at a cost of US$ 460 million. Ethiopian Airlines is the number one formal sector employer, employing over 4,500 employees. In addition, the airline supports the domestic transport sector (on account of the inaccessible terrain) and directly contributes to Ethiopian tourism.
