Capital raising and project finance advisory in Africa

TSW Capital has closed five transactions in Africa, concentrated in renewable energy. Three are commercial and industrial solar financings in South Africa; two are equity investments into renewable energy and hydro power on a pan-African basis, including a hydro transaction in Uganda.

Renewable energy and C&I solar financing

Commercial and industrial solar — generation built to supply a single industrial or commercial offtaker rather than the grid — is a financing problem of its own. The asset is straightforward; the credit question is the offtaker and the power purchase agreement behind it. Tenor has to match the PPA, and the lender is in practice taking a view on a corporate counterparty as much as on a solar plant.

We have arranged a USD 15Mn term loan and a USD 7.25Mn term loan for C&I solar businesses in South Africa, along with a USD 5Mn bridge finance facility — bridging being a recurring requirement in this sector, where construction starts before long-term debt is drawn.

DFI funding in Africa

Development finance institutions and impact funds are the dominant source of long-tenor capital for African renewable energy and financial institutions, and they are the lenders and investors we work with on the continent. Their processes are slower and more rigorous than commercial lenders — environmental and social assessment, development-impact reporting, procurement conditions — and building that into the timetable from the start is most of the job.

We are also well connected in the private equity ecosystem and can help companies within Africa raise growth equity across consumer, climate, financial services and energy sectors.

Equity into African renewables

We have also raised equity: a USD 10Mn investment into a renewable energy equity fund and a USD 3.68Mn investment into hydro power.

Our Africa transactions

South Africa – C & I Solar

USD 15 Mn Term Loan

Pan-African – Renewable Energy Fund

USD 10 Mn Equity

South Africa – C & I Solar

USD 7.25 Mn Term Loan

South Africa – C & I Solar

USD 5 Mn Bridge Finance

Pan-African – Hydro Power

USD 3.68 Mn Equity

Raising capital in Africa

Whether you are looking at an offshore facility, private credit, venture capital or a growth equity round, tell us what you are funding and we will tell you what the realistic options are. If you are a corporate looking for financing from local banks in African countries for your projects, we can be the right advisor for your requirement.

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