Infrastructure Sector Solutions

RMB plays an instrumental role in the African power sector, covering both thermal and renewable projects across a number of technologies and jurisdictions.

RMB’s full-service offering includes highly structured long-term inflation-linked term debt, mezzanine debt, preference share funding, guarantee facilities, interest rate and forex hedging, account bank, agency services and project finance advisory. RMB is also a key protagonist in promoting local South African ownership in renewable energy projects via our portfolio of equity gearing facilities exceeding R2bn, which has helped deliver tangible benefits to project shareholders.

We have specific expertise and track record in these areas:

• Renewable energy – RMB has been one of the leading financiers in the South African renewable energy programme since its inception, having financed many projects across several technologies, committing over R25bn to the programme to date. RMB’s innovative financing solutions have delivered very competitive offerings for our clients, like the 140MW R4.5bn Roggeveld wind project (2018) which achieved the lowest tariff bid in the programme to date. RMB has also funded renewable energy projects in Namibia, in partnership with RMB Namibia
• Private power – RMB has increased its expertise in, and focus on, the distributed generation and private power sector, covering everything from rooftop solar and micro grids to larger scale commercial and industrial power installations, both for own use and bilateral electricity sales. We believe that private power is a seminal solution to the continent's power constraints, moreover with the recent regulatory changes in South Africa aimed at reducing red tape required to get private power projects developed and funded
• Gas power projects – On the back of three landmark transactions closed in West Africa in consecutive years, coupled with the funding of the Avon and Dedisa gas-fired plants in South Africa, RMB has gained a reputation as the leading commercial bank for arranging, structuring and funding greenfield gas power projects in the sub-Saharan Africa power sector
• Smaller renewable energy projects – RMB was instrumental in creating the FIRST Fund in December 2017. The FIRST Fund is a blended finance initiative aimed at small renewable energy projects in South Africa. RMB partnered with KfW to address the hurdles that these small projects face by simplifying the credit assessment and due diligence process for these deals
• Green hydrogen – RMB believes that Africa generally, and South Africa specifically, could become a key player and exporter in an emerging global hydrogen economy. This economy has major applications in providing fuel for transport, electricity plants, fuel cell batteries as well as heating for industrial, residential and commercial sectors. RMB is gearing up to play a meaningful role in ensuring that Africa reaches its potential in the green hydrogen economy

Examples of transactions we have delivered include:

• Thermal - Cenpower, Amandi, Azura, Avon, Dedisa
• Wind - Roggeveld, Gouda, Umoya
• Solar PV - Jasper, Kathu PV, Lesedi, Aurora, Vredendal and Aloe
• Solar CSP - Kathu Solar Park, XiNa, KaXu, Bokpoort
• Renewable energy equity – iThokazi, Thebe; Pele Touwsrivier
• Hydro - Cahora Bassa, Stortemelk
• Grid Infrastructure - GridCo
• First Fund - a blended finance fund for smaller renewable projects

Contacts:

Daniel Zinman - Daniel.Zinman@rmb.co.za
Hugh Hawarden - Hugh.Hawarden@rmb.co.za

RMB is a market leader in the advisory and financing of equity participants in Infrastructure Projects. Our support of equity participants ranges across various sectors and asset classes, covering a range of financing and advisory services.

RMB’s support of shareholders includes:

• Financing of various transaction parties (Anchor Sponsors, BEE)
• BEE advisory services
• M&A services in REIPPP
• Infrastructure Equity Investment Hold Co’s (investment vehicles for 3rd party shareholders)

Some examples of Equity Transactions include:

• Vulindlela Preference Share Funding into PPPs and Concessions Arranger and Funder, R60mn, 2021
• Calulo Preference Share Facility for acquisition funding and general corporate purpose Arranger and Preference Share Funder, R320mn, 2020
• Vulindlela Preference Share Funding into Afgri SiloCo Arranger and Funder, R97mn, 2020
• Thebe STANLIB Renewable Energy Partnership Financial Advisory, Funder and Structurer, R2.8bn, 2020
• Thebe Titan Renewable Energy Facility Acquisition Sole Lead Arranger and Preference Shareholder, R655mn, 2020
• Pele Green Energy shareholding refinancing Sole Arranger and Funder, R200mn, 2020
• DLO Energy and SULA Group preference share facility Arranger and Preference Share Funder, R60mn, 2020
• iThokazi Holdco Financing Advisory, Preference share financing and M&A services, R310m (2019)
• Thebe Biotherm Renewable Energy Equity Financing Project financing facility, sole lead arranger and preference shareholder, R507m (2018)
• Royal Bafokeng Holdings, Liquid Telecom and Vodafone Preference Share Facility, Sole Lead Arranger, R450m (2018)

Contacts:

Kwabena Malgas - Kwabena.Malgas@rmb.co.za

Transport infrastructure plays a critical role in growth and productivity of our continent. RMB has consistently supported the development of this crucial public infrastructure by leading a number of landmark transactions in South Africa, and across Africa

Examples of transactions we have delivered include:

• Toll Roads - N3TC; Trans African Concessions (TRAC); Bakwena; Chapman’s Peak (100% of the toll road concession in South Africa)
• Rail - Nacala Port and Railway in Mozambique, Gautrain
• Ports - Ghana Ports
• Border Posts - Beitbridge Border Post
• Airports - Angola Airports
• Pipelines - Kenya Pipeline Company

Contacts:

James Price - James.Price@rmb.co.za

ICT infrastructure is a key element in modern-day infrastructure. RMB has played a critical role in the early-stage development of this sector to channel capital to this fast-growing sector across the continent.

Examples of transactions we have delivered include:

• Mobile Networks - MTN across various sub-Saharan African jurisdictions, Comsol, Rain
• Fibre - CIVH, Dark Fibre Africa, Vuma, Liquid Telecom
• Mobile Network Towers - IHS, Helios Towers

Contacts:

Keith Webb - Keith.Webb@rmb.co.za

Access to clean water is a basic human right. RMB supports the development of crucial water infrastructure for both public and corporate use, including bulk water infrastructure, wastewater treatment facilities and desalination plants.

Examples of transactions we have delivered include:

• Wastewater Treatment – Durban Water Recycling Concession
• Bulk Water – Trans Caledon Tunnel Authority (TCTA) RMB has led and participated in multiple water augmentation schemes for TCTA, including the Komati Water Scheme Augmentation Project; the Mokolo Crocodile Water Augmentation Project; and the Lesotho Highlands Water Project (Phase 1 and 2)

Contacts:

Hugh Hawarden - Hugh.Hawarden@rmb.co.za
Amber Bolleurs - Amber.Bolleurs@rmb.co.za

RMB offers infrastructure and project finance facilities to corporates looking to develop industrial infrastructure in a wide variety of sectors including mining, manufacturing and processing. This form of finance differs from traditional on-balance sheet borrowing by the client, as we apply project finance principles and structuring to the transaction, and in some cases, crowd in private equity investors. Financing structures can also include export credit solutions and securitisations

Examples of transactions we have delivered include:

• Soft Commodity Storage Facilities –
  • AFGRI Grain Silo Company – RMB acted as adviser and mandated lead arranger to assist AFGRI in raising R1.2bn of equity and a further R2.1bn of senior and subordinated debt for their strategic grain storage platform (2019)
• Processing plants –
  • AlcoNCP – RMB acted as mandated lead arranger for ZAR and USD ECA-backed senior debt facilities, and a subordinated debt facility for the conversion of AlcoNCP’s plant to accommodate a change in feedstock (2019)
  • Indorama Eleme Fertilizer Company – RMB acted as lender to a USD150m facility for a second feed conditioning unit (2019)
  • Tongaat Xinavane – RMB acted as mandated lead arranger for an export credit facility for the construction of the Xinavane sugar mill in Mozambique

Contacts:

James Price - James.Price@rmb.co.za
Amber Bolleurs - Amber.Bolleurs@rmb.co.za

RMB offers comprehensive and unrivalled financing solutions for Concession and PPP transactions, delivered by a multi-disciplinary team with deep experience in financial, commercial and technical aspects. We understand the PPP contractual framework and know what it takes for a project to reach financial close. Importantly, we have a strong grasp of the risk allocation of the PPP framework and have the track record of delivery to prove it..

RMB’s approach is solutions-oriented and we work with our clients to address various commercial and contractual matters that may unfold in the path towards financial close. We achieve this by developing bespoke, flexible financial and contractual structures that are robust and sustainable in the long term, which take into account the nuances of each specific transaction. We focus on optimising projects for affordability and bid competitiveness.

Examples of transactions we have delivered include:

• Border Posts – BeitBridge Border Post
• Hospitals - Inkosi Albert Luthuli Hospital
• Medical Equipment - GE/Kenyan Ministry of Health
• Prisons - South Africa Correctional Services
• Serviced Accommodation – DALRRD, DIRCO, Stats SA
• Toll Roads - N3; TRAC; Bakwena; Chapman’s Peak (100% of the toll road concession in South Africa)
• Rail – Gautrain

Contacts:

Siyanda Mflathelwa - Siyanda.Mflathelwa@rmb.co.za

Together with our Resource Sector Solutions colleagues who focus on upstream and downstream oil and gas, we specialise in financing solutions for mid-stream oil and gas infrastructure, including storage, transport and processing.

We have specific expertise in these niche areas:

• Shipping – Funding of shipping vessels to carry LNG from the substantial gas resources of Mozambique to the market. Historically, RMB has played a leading role in funding LNG tankers in West Africa as part of the Nigeria LNG project.
• Import terminals and storage – In South Africa, RMB has been mandated to raise funding for LPG storage facilities in Saldanha and several oil storage terminals across the continent.
• Pipelines – RMB played an instrumental role in the financing of Kenya Pipeline Company’s Line 1 replacement from Mombasa to Nairobi – a critical energy corridor for that country .
• Processing facilities – RMB has been a long-standing banker to Indorama in Nigeria and has recently also financed Seplat’s ANOH gas processing plant.
• Blue Hydrogen – In many instances, the green hydrogen industry has been initiated by converting the natural gas industry to hydrogen. This allows for direct carbon dioxide management in the production rather than combustion process. In addition, existing natural gas infrastructure is the most likely initial corridor for facilitating the hydrogen industry. RMB is gearing up to play a meaningful role in ensuring that Africa reaches its potential in the hydrogen economy.
• Gas power projects – On the back of three landmark transactions in closed in West Africa and one major transaction in South Africa, RMB has gained a reputation as the leading commercial bank for arranging, structuring and funding greenfield gas power projects in the African power sector.

Examples of transactions we have delivered include:

• Shipping - LNG tankers (Nigeria)
• Storage - Various across the continent
• Pipelines - Kenya Pipeline Company
• Downstream gas - Fertiliser manufacturing, Gas processing plants (Nigeria)
• Gas power - Avon and Dedisa peaking power plants (South Africa)
• Cenpower, Amandi, Azura (West Africa)

Contacts:

Keith Webb - Keith.Webb@rmb.co.za

RMB has a rich history in providing asset financing solutions to a variety of clients in the following sectors:

• Aviation – RMB acts as an operating lessor and/or financier of passenger or cargo aircraft for clients across Africa and Europe, providing senior debt, pre delivery financing, junior debt, export credit solutions and/or equity
• Rail – locomotive and rolling stock/wagon debt financing as well as operating leases in South Africa and the Broader Africa
• Shipping – tugboat and other select sub-classes of shipping with unique debt solutions
• IT and Healthcare – IT and healthcare medical equipment providers benefit from a variety of solutions successfully deployed
• Mining/yellow metal – in collaboration with our Resources division, we assist mining and commodity companies to fund their moveable asset requirements with asset-backed lease and debt solutions

In addition to traditional senior debt, subordinated debt and equity, our solutions offering also extends to instalment sale, lease and rental discounting facilities.

Examples of transactions we have delivered include:

• Ethiopian Airlines - pre-delivery payment funding for their first-ever Boeing 787 Aircraft deliveries
• Comair - Business rescue aircraft secured debt support; aircraft simulator debt funding for Boeing 737-800 SIMs
• Virgin Atlantic Airways and GOL Varig Brazil – junior debt funding for Boeing and Airbus widebody aircraft
• South Africa Express, SA Airlink, Comair, Safair, South African Airways, Air Namibia, Ethiopian Airlines, Flybe, TAAG Angola, Estafeta Carga Mexico – a variety of senior debt funding as well as some operating lease structures
• HNW individuals and large conglomerates – business jet funding for Hawker 900 and Learjet 45LR aircraft
• Air Namibia and SA Express – pure operating leases

Contacts:

Wouter du Preez - Wouter.DuPreez@rmb.co.za