Transaction Advisory

Fresh Approach

What separates us from our competitors is our fresh approach to raising finance.

Raising finance locally

One of our key strengths in raising finance in Africa stems from our understanding of the regional financial markets.

Our strategy is to use our local knowledge to raise a percentage of the necessary finance in-country. Our focus initially is to target the financial institutions which have a legislative requirement to invest a portion of their funds (this ranges from 30-100%) into local projects and investments, these institutions include, pension funds, insurance companies and development institutions.

Comprising predominantly of actuaries,  who have extensive experience in the pension funds and insurance sector in Africa, we are able to explore possible funding structures which suite these institutions membership profile and asset and liability ratios.

  • » From our past experience, we have seen enormous additional benefits flowing from raising finance from local institutions. In particular, local finance:
  • » Reduces the perceived risk, internationally, of the transaction, as local investors have committed to the transaction;
  • » Increased foreign interest into a project;
  • » In most cases, reduces the cost of PRI cover;
  • » Reduces currency risk for the project; and
  • » Provides local institutions with the opportunity to invest in higher yielding investments relative to their current portfolio holdings.

By way of illustration, our firm has executed transaction in in Swaziland, Botswana, Ethiopia and most recently in Zimbabwe where local financial institutions have invested in our transactions.

Once the aforementioned financial institutions have been engaged, our approach would be to source finance from local commercial banks prior to approaching the international market.

Local presence

We conduct advisory services in-country, working with stakeholders on the ground, not by ‘remote control’ from head office. This approach (coupled with our local knowledge and networks), ensures a smooth flow of communication, which ultimately speeds up transactions on our client’s behalf.

Recent successful projects by our teams on the African continent bear witness to the success of this approach.

Insurance

Our approach in raising finance from domestic financial institutions, has resulted in our clients benefiting from discounted insurance premiums on PRI or full commercial risk cover as insurers understand the political hedge local finance brings to a transaction.

Highly skilled

Most of our financial consultants are actuaries who are highly skilled, experienced and knowledgeable in structuring transaction on the continent, in particular where an out the box approach is required.

By way of illustration, our firm has closed transactions where debt, mezzanine and equity finance as well as pref share solutions were brought together from multiple jurisdiction, in various currencies and where several layers of security were required to bring the deal to financial close.

Reliable and non-conflicted

As a boutique corporate finance firm, we are able to offer our client dedicated and committed resources that give their project/transaction the highest priority. This, coupled with the expertise and experience of our consultants, ensures that our clients are in safe, reliable hands throughout our mandate.

As a policy, we do not have any partnerships with financial institutions that invest into our transactions. Hence our clients have the peace of mind that we structure transactions to their benefit, with no ulterior motives and at the most favourable rate possible.

With a growing footprint in Africa, JALTECH has been involved in engagements in the following countries:

  • » Botswana
  • » Democratic Republic of Congo
  • » Ethiopia
  • » Kenya
  • » Namibia
  • » South Africa
  • » Swaziland
  • » Uganda
  • » Zimbabwe
  • » Tanzania
Unit 19,1 Melrose Blvd, Melrose Arch
Gaurav Nair  |  Director email: gaurav@jaltech.co.za
Derrick Hyde  |  Director email: derrick@jaltech.co.za
Jonty Sacks  |  Director email: jonty@jaltech.co.za

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