Our Sample Deals

The Project

Exited deal -Nigeria

In 2013 the Ondostate wanted to expand their network of secondary schools. Faced with limited revenue cash-flow the government sought proposals to develop up to 10 schools as a pilot program. Scope of work covered the design, engineering, finance and construction of:

  •   A total built up area of 23,147 square meters
  •   Classroom accommodation and support services for 5250 students
  •   210 classrooms with administration blocks, multi purpose halls, playground and external land development
  •   Total project area of 22 hectares scattered across 10 sites
  •   1 year facilities maintenance covering breakage and wear and tear

Based on a design brief Africa Plus Partner’s team put together a detailed design and cost estimate and structured a finance solution.

Investment Thesis

The team offered a financing plan in the proposal that was secured again ISPO’s (Irrevocable Standby Payment Order) from the FAAC account of the state. The basis of the investment included the following key traits:

  •  Secured funding through ISPO on FAAC account and 15% advance from the state
  •  Low execution risk with control over design and site handover free from encumbrances
  •  Local government and population buy in as project was a key development requirement for both
  •  Self liquidating project (so no exit risk) with the payment against ISPO’s with last payment completing 2 years after site hand over
  •  Availability of financing to enhance equity return covering 75% of the total cost to construct the project

Current Status

In December 2015 the last school was handed over to the client as scheduled. Equity returns >25%