Our fundraising success, in such a challenging environment, is a validation of the mezzanine asset class in Africa and of our role as a pioneer in this space over the past 17 years
JOHANNESBURG, South Africa, February 6, 2023/APO Group/ —
Vantage Capital (www.VantageCapital.co.za), Africa’s largest mezzanine fund manager, announced today the successful final close on its fourth mezzanine fund. A total of US $377 million of commitments has been secured from a mix of European and US-based commercial investors, as well as a host of development finance institutions (DFIs) that include IFC, BII, SIFEM, DEG, Norfund, Swedfund, Finnfund and EIB.
As with its predecessor funds, Vantage will continue to provide mid-sized African businesses with flexible capital to drive business expansion and support job creation. In particular, mezzanine debt is well-suited to robust sectors with strong growth dynamics, including telecoms, healthcare, education, real estate, export manufacturing, outsourced services and selective infrastructure such as private power generation. Fund IV has made two investments to date, providing early-stage construction funding to Seaton Estates in South Africa for a residential development on the KwaZulu Natal coast, and backing a prominent Egyptian private equity firm, Compass Capital, to acquire a portfolio of A grade office buildings in Cairo as they build a diversified portfolio of income-generating real estate assets.
Warren van der Merwe, Managing Partner, noted, “Vantage is proud of the continued support received from our investors. We were the first independent mezzanine fund in South Africa when we raised Fund I in 2006. Mezzanine was not well known in South Africa at that time, let alone in the rest of Africa. Since then, we have taken our mezzanine product across Africa, targeting 14 markets and having invested in 11 to date. Our fundraising success, in such a challenging environment, is a validation of the mezzanine asset class in Africa and of our role as a pioneer in this space over the past 17 years. As with previous funds, a substantial portion of the funds have been raised from private sector investors such as insurers, pension funds and endowments who find our contractual yields and equity upside exposure attractive when compared to private equity alternatives. We have also received valuable support from DFI investors, who appreciate the impact that mezzanine can have in growing mid-sized African enterprises.”
Over the past 17 years, Vantage has funded a number of success stories across a range of sectors around the continent
Since 2006, Vantage Capital’s Mezzanine division has made 33 investments across four funds into 11 African countries, making it the largest and most experienced independent mezzanine funder on the continent. Its inaugural mezzanine fund was raised in 2006, with US $150 million invested into five South African companies. In 2012, its second mezzanine fund of $240 million was raised, investing into a portfolio of 13 companies across Africa. This was followed by its third mezzanine fund of US $287 million raised in 2015, with a further 13 investments spread across the continent. Vantage’s success in now raising $377 million for its fourth mezzanine fund is a validation of the growing demand for flexible funding solutions amongst mid-sized African corporates, as well as a recognition by investors that Vantage is a leader in this niche.
“Vantage Capital’s mezzanine offering plays an important role in supporting the growth of mid-size businesses that would otherwise struggle to access capital through conventional banking channels”, explains Luc Albinski, Executive Chairman. “Vantage’s non-dilutive funding enables business owners to retain control and hold on to their equity, while at the same time accessing the capital needed to realise their full potential. This, in turn, plays an important role in driving economic growth, job creation and improved prosperity.”
Over the past 17 years, Vantage has funded a number of success stories across a range of sectors around the continent. Vumatel, a fibre-to-the-home network operator in South Africa, is one such example. Vantage invested in the company in 2016, at a time when it had a small subscriber base of 3,500 but was well-poised to take advantage of tremendous household demand for fibre. With the help of Vantage’s expansion funding, in a little over two years the company grew its subscriber base to over 90,000 and enjoyed exponential growth in operating profit. Another example is Pétro Ivoire, a leading downstream oil & gas distributor in Côte d’Ivoire, where in 2018 Vantage facilitated the first-ever leveraged management buyout in Francophone West Africa. The transaction enabled the founding family to regain control of their business by using Vantage’s mezzanine debt to buy out their private equity investors. The expansion funding provided to CIM Santé in Morocco has enabled the hospital group to expand its beds fivefold over the past two years, from 120 to 620, with a target of growing to 1500 beds over the coming three years. And in late 2020, Vantage provided Pickalbatros Hotels in Egypt with capital for its renovations, at a time when banks were reluctant to support the hospitality sector due to the negative impact of Covid-19.
Vantage’s support to its portfolio extends beyond funding. The fund manager plays an active role in guiding strategic direction, building robust governance structures, and supporting its companies to improve their environmental and social impact. These interventions help to set the companies firmly on the path to becoming regional leaders and serving as role models to their African peers. As Vantage deploys its fourth mezzanine fund, this will remain an area of focus and pride for the firm.
Distributed by APO Group on behalf of Vantage Capital Group.
Participating in an on-stage interview at Angola Oil & Gas 2024, Sonangol CEO Sebastião Gaspar Martins emphasized that oil and gas remains a core focus for the national oil company
LUANDA, Angola, October 3, 2024/APO Group/ —
Angola’s national oil company Sonangol reiterated its commitment to driving sustainable hydrocarbon development during the Angola Oil & Gas (AOG) conference this week. Speaking during an “In-Conversation with” session, Sonangol CEO Sebastião Gaspar Martins stated that the company will not abandon oil and gas, but rather advance decarbonized oil and gas development.
We are looking at opportunities in the gas sector and have identified the right partner to develop non-associated gas
By investing in upstream oil and gas production while prioritizing low-carbon projects, Sonangol aims to boost national crude output, while diversifying and decarbonizing the industry. The NOC is focusing efforts on non-associated gas development, as well as alternative energy sources such as solar.
“We are looking at opportunities in the gas sector and have identified the right partner to develop non-associated gas. Gas produced from Angola LNG will be used for the production of fertilizer and we are evaluating the utilization of gas in the south of the country, linking gas with steel industries. We also have a blue carbon project, linked to the reduction of carbon through the plantation of mangroves. We have one area in Luanda and have identified four additional areas for this,” stated Gaspar Martins.
Sonangol has undergone transformation in recent years: following the creation of the National Oil, Gas & Biofuels Agency (ANPG) in 2019, Sonangol transferred its role as national concessionaire and regulator. This transformation has aimed to make Sonangol more competitive and strengthen its capacity as an upstream operator. Concurrently, the government is partially privatizing the NOC, with privatization set to be complete in 2026. This process will enhance financial capacity, allowing Sonangol to drive new upstream projects forward.
“The transformation of Sonangol started several years ago, when we passed the regulatory, concessionaire role to the ANPG. At the time, we transferred almost 600 employees to the ANPG. After that, Sonangol underwent a restructuring program where we created five core business units from 36 different entities – starting with exploration and production. We want to go public, but we want to do it properly. So, we are currently going through all the processes to do this,” stated Gaspar Martins.
Distributed by APO Group on behalf of Energy Capital & Power.
Chevron announced plans to supply 600 million cubic feet of gas per day to the Angola LNG facility by year-end at the Angola Oil & Gas conference on Wednesday
LUANDA, Angola, October 3, 2024/APO Group/ —
Energy supermajor Chevron will supply 600 million standard cubic feet of gas per day to the Angola LNG (ALNG) facility by the end of the year. This comes as the Sanha-Lean Gas Connection (SLGC) Project – developed by Chevron’s local subsidiary and set to deliver lean gas to the ALNG onshore plant – prepares for first production by Q4 2024.
When you talk about energy security, [gas] is one of the key enablers
The announcement was made by Chevron’s Managing Director of the Southern Africa Strategic Business Unit Billy Lacobie during an “In Conversation with” session at the Angola Oil & Gas conference in Luanda on Wednesday.
“It’s very exciting as you go forward and look at the immense opportunities when you go into gas,” said Lacobie. “When you talk about energy security, [gas] is one of the key enablers.”
According to Lacobie, Chevron’s gas production increase will be driven by the installation and tie-in of the SLGC Project to the existing Sanha Condensate Complex, which features pipelines connecting Chevron-operated Blocks 0 and 14 to ALNG.
Distributed by APO Group on behalf of Energy Capital & Power.
The preliminary agreement covers the development of the Barra do Dande Green Hydrogen Project
LUANDA, Angola, October 3, 2024/APO Group/ —
Angola’s national oil company Sonangol signed an agreement with energy companies Conjuncta, CWP and Gauff for the development of the Barra do Dande green hydrogen project in Angola. Signed during the Angola Oil & Gas conference on Wednesday, the deal covers the design, licensing, financing, engineering and construction of the facility.
Situated in the municipality of Barra do Dande, the green hydrogen project will produce up to 1,200 tons of ammonia for export to the European market. The facility will feature the installation of 600 MW of renewable energy capacity – generated from hydropower sources – as well as a 400kv substation and adequate water treatment.
The deal was signed by Orlando da Mata, President of the Board of Directors of the Sonangol Research and Development Center; Vladimir Machado, President of the Executive Committee of the Sonangol Research and Development Center; Michael Scholey, CEO of CWP; Stefan Tavares Bollow, CEO of Gauff; and Julian Reichert on behalf of Conjuncta CEO Stefan Liebing.
Distributed by APO Group on behalf of Energy Capital & Power.
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