Harith, Financier of Infrastructure Projects

South Africa has for the last two decades been on a development drive to remedy the skewed implementation of infrastructure during the apartheid years, and to meet the demands of a growing economy and population.The government has courted foreign direct investment to lure investors into areas that need infrastructure, and foreign companies often build, own and operate facilities. One institution that has positioned itself to assist in this regard is Harith.

With headquarters in Sandton and offices in Ghana,Tunisia and London, Hariths mission is to match customer expectations to opportunities in Africa and also to manage the investment returns and risk for multiple funds and provide advisory services. This is achieved through the Emerging Africa Infrastructure Fund (EAIF) and GuarantCo.

EAIF offers long-term USD and/or EUR denominated debt (Senior, Subordinated and Mezzanine).This finance platform lends to private sector owned, managed and controlled entities with infrastructure sector focus in power, transport, telecoms, water, oil and gas, cement, steel, etc.The debt amount available from EAIF for any single transaction is typically between USD 10 million and USD 35 million.The maximum tenor is typically up to 15 years with appropriate grace periods.

GuarantCo is a local currency guarantee fund, set up to encourage the use of local currency financing for infrastructure projects. GuarantCo covers similar infrastructure sectors to EAIF and also urban regeneration (e.g. social infrastructure and housing) and operates globally.

GuarantCo offers partial credit guarantee covering default risk on a portion of a loan or bond (generally on demand and unconditional), partial risk guarantee covering default risk due to specific events (e.g. construction failure or revenue shortfall), cover for senior, mezzanine or sub debt; maturity, coupon or principal strips, Loans, bonds or securitisation. Other methods of risk transference considered are insurance / reinsurance or CDS/derivatives).

Harith can be contacted on 0113844000.

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