The Power and Aviation intervention Fund is a N300BN (US$2BN in 2011) fund created by the Central bank of Nigeria (CBN) to help buffer the knock-on effects of the 2008 global financial crisis and assist in the fast-track development of power and airline sectors in Nigeria.

The Financial Advisory department supported CBN in the conceptualisation and design of this strategic financial intervention and has been retained since 2011 as the Technical Adviser to the Central Bank of Nigeria on the implementation of this fund, which is managed by the Bank of Industry.

Since the inception of the fund, the Financial Advisory department has reviewed over 168 applications from power projects and aviation companies and provided investment recommendations totalling over US$2.6BN to the fund. The disbursements to-date include N191BN and N121BN to the power and airline sectors respectively. The fund has financed 1,662.3MW of power projects in Nigeria, with 1,214.3MW of this capacity being new supply.

The Financial Advisory department provided corporate finance advice on multiple transactions to a leading National Oil Company (NOC) in Africa, including:

• Corporate finance advisory with respect to the acquisition of a minority stake in one of the largest oil refineries in Africa
  
  
• Assisting the NOC and its joint venture partner in raising up to US$1.95BN through an alternative financing structure for the development of an onshore/swamp oil and gas asset with an estimated 2P oil reserves of 542MMbbl
  
  
• End-to-end corporate finance advisory ranging from valuation, transaction structuring and capital raise of US$2.1 billion with respect to the acquisition of an upstream entity with interest in an oil and gas asset with an estimated 2P oil reserves of 1 billion barrels.
  
  

BUA Group, a leading infrastructure, mining and manufacturing world class conglomerate headquartered in Nigeria – with diversified investments spanning key businesses, spread across African and global markets, is developing a 20,000-hectare plantation, 2,200,000 tons sugar milling plant and a 200,000 tons per annum sugar refinery that will process and refine white sugar. The facility will also have an ethanol plant that should produce 25 million litres of ethanol annually and a 35-megawatt power plant that will produce renewable energy from bagasse – sugarcane residue.

The Financial Advisory department acted as exclusive financial adviser helping BUA Group to arrange a US$200 million corporate facility to fund completion of the project.

Once completed this landmark project which will significantly reduce Nigeria’s sugar import bills, currently estimated at over US$400 million per annum. The Project should, over its useful life, reduce Nigeria’s sugar import bills by approximately US$2 billion and create about 15,000 direct and indirect jobs that will accelerate development impact in the economy.

The Bugesera International Airport is a greenfield world-class airport project jointly owned by The Government of Rwanda and Qatar Airways. The airport will be located 25km southeast of Kigali, feature a 4,200 meters runway and have capacity for 1.9 million passengers per annum following the completion of first phase works.

The Financial Advisory department assisted Mota Engil Engenharia e Construcao Africa SA (a world class construction company part of the project’s Engineering Procurement Construction (EPC) consortium) towards achieving financial close on the record breaking US$1.3 billion airport project, in the capacity of financial adviser and mandated lead arranger for US$500 million of the total project costs.

It is envisaged that once the first phase of the project is completed, the airport will be able to accommodate c.1.9 million passengers yearly, further actualising the country's strategy to become a crucial aviation hub for the region.

Brahms Oil Refineries Limited (BOR) is developing the 151,700m3 products and intermediate storage infrastructure including a 12,000 bbl/d oil refinery as well as ancillary infrastructure including a jetty and a pipeline to be located in Kamsar, Guinea. (Société de Raffinage Guinéenne S.A).

Since AFC’s Financial Advisory department’s formal engagement, the team has supported BOR in various activities including providing project finance advice; developing last mile project development activities required for lenders and equity investors; securing project development finance for the project; onboarding a world class strategic partner to participate in the project; and is currently in the process of raising the required financing of up to US$350 million to implement the project.

Once completed, a major benefit of the project will be to provide a source of import substitute for petroleum products and improve the country’s balance of payment, given the country currently depends on imported petroleum products.

The Djibouti Ports & Free Zones Authority (DPFZA) is the governmental body of Djibouti that administers and manages the Port of Djibouti and several other facilities in the country. The DPFZA also oversees the management of Djibouti International Free Trade Zone, serving as a liaison between the companies based there and other governmental agencies.

Since 2017, the Financial Advisory department has advised DPFZA on a variety of financial transactions which include a US$63MM strategic investment to construct and operate a 60MW wind project in the Ghoubet area, near Lake Assal in Djibouti. The Corporation led this project since 2017, developing it from concept to bankability, securing a 25-year take or pay power purchase agreement with Électicité de Djibouti as the offtaker, and a land lease agreement with the Government of Djibouti. The wind project is expected to begin commercial operations in 2022.