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INNOVATIVE FUNDING SOLUTIONS

Achieve Your Goals

With foreign direct investment in Africa at an all time low, high cost of capital in local markets, slow economic growth and massive outflows of foreign capital from our borders, tough global trading conditions, difficult regulations and red tape….......

 

Growing or expanding private companies in Africa including South Africa is a massive task. But if we’re serious about meeting our most urgent requirements by growing our base of job-creating private companies, something needs to be done. All countries in Africa are in desperate need for job creation, we need to delve deep in order to understand the critical constraints needed to unlock this kind of growth.

 

Underwriting loan capital with A+ rated insurance guarantees is the type of innovation that Bluestone can deliver which reduces the investor/funder risk profile.

Get in touch to learn more about how this service can help you.

 

Innovative Funding Solutions

  • Focus on Commercial & Industrial (C&I) viable and sustainable clients ONLY

  • In this model, there is zero upfront cost by the client.

  • Quotes in South Africa in ZAR, but in the rest of Africa quotes in USD

  • In certain high-risk African countries where USD is in short supply then payments from outside of those countries in USD must be guaranteed. Generally, those commercial & Industrial International companies/corporates or companies that export are the targetted clients.

  • Terms included in the PPA model (dependent on Country RISK):

  • Tariff rates per PPA Rate (U$D/kWh) from U$D0.075c - U$D0.09c  

  • Escalations: 2.0% - 3% per annum

  • Term: 15, 20, or 25 years

Many funders want some form of guarantee for their projects and an alternate approach can be through the Private Placement Property bond issue where the "assets" of the project (future cashflows, off-take agreements, assets underground (mining), shareholding etc.) are pledged and embedded in the bond. Put differently, you would issue a bond against the project which they would purchase for $x and in the event of default on the debt note (repayments) they would redeem the bonds and take the "assets" of the project.

 

  • They would purchase the Bond at a discount 80% of face value and already they have made a 20% return on their investment.

 

  • A bond with a ISIN no takes about 2 weeks (14 banking days) to issue and less expensive to issue and lot more simpler than a bank guarantee.

 

  • Plus Bonds are tradable and if the asset is a top class Mauritian Hotel or rare Earth Mine then they are very desirable and in demand