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Making insurance work for investors in difficult places.

DeRisk Advisory Services Ltd. is pleased to announce that the 450MW Azura-Edo IPP in Edo State, Nigeria reached financial close on 28th December 2015.

Dear <<First Name>>,

DeRisk acted as MIGA (World Bank Group) agent and advised investors and lenders to the Azura-Edo IPP power project, which involved coordinating multiple insurance application and underwriting processes over 5 years. The project is widely viewed as major achievement in the Nigerian power sector and the first of what is hoped to be a series of project-financed independent power plants.

“DeRisk is proud to have helped investors in Azura secure MIGA coverage, which was essential for the project to reach financial close,” said Andrew Gaines, managing director of DeRisk. “There is enormous potential for more power projects in Nigeria and across Africa, and we expect Azura to be a real catalyst to them getting financed and built.”

The total project cost is in the region of US$900m, with around US$712m in senior and mezzanine debt being provided by more than fifteen financial institutions with the balance of the funding provided by equity sponsors. MIGA covered US$492m of equity and debt.

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, 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. 

See MIGA’s press release:

https://www.miga.org/Lists/Press%20Releases/CustomDisp.aspx?ID=510

DeRisk is currently working with several developers and investors on the next wave of IPPs in Nigeria.

 


About DeRisk

DeRisk Advisory Services Ltd. is an authorised agent of the Multilateral Investment Guarantee Agency (MIGA), the World Bank Group’s political risk insurance and credit enhancement division. DeRisk has completed over 25 insurance transactions in Africa with MIGA, OPIC and others since 2006. For more information, contact DeRisk managing director, Andrew Gaines, on +44 20 7099 7032.

DeRisk advises investors and businesses on making investment insurance work in frontier markets. We start by answering questions like:

  • How can political risk insurance or other risk products make my business plan 'bankable' for lenders?
  • How can I deal with the risks that keep equity investors from investing in my business or project?
  • What does it cost to insure this investment against political risk?
  • Who will cover an investment in this country right now, and how long will it take?
  • How do I show that I've mitigated environmental and social impacts in order to qualify for insurance or financing from multilaterals?

 You are receiving this email because we've met you, corresponded with you or connected with you on LinkedIn, and thought our work on risk mitigation and investment in frontier markets would be interesting to you and/or people you work with.

DeRisk Advisory Services Ltd. (FSA Registration No. 503053) is an Appointed Representative of Rapprocher Ltd., which is authorized and regulated by the Financial Services Authority. Registered in England & Wales at 145-157 St. John Street, London, EC1V4PY. Registration No. 06000654.

Our mailing address is:
DeRisk Advisory Services Ltd.
1 Rosemont Rd
London, NW3 6NG
United Kingdom

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