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Jyrki Koskelo African Development Corporation
USA / Germany
GLOBAL THEMES
• Demographics: - China, India, Africa ?
• Economic turmoil: - Role of Development Aid ?
- Public vs. Private funding ?
- North vs. South
• Environmental concerns: - Consumer demand
SELECTED SOLUTIONS
• Economy: - Development of local capital markets
- Development of multi – tier banking system
• Public policies and support - Land titles, mortgage laws
- Public Private Partnerships
- Blended finance
• Green revolution
Utrecht
ADC – Your Gateway to Africa Investor Presentation
June 2012
Utrecht
ADC AFRICAN DEVELOPMENT CORPORATION YOUR GATEWAY TO AFRICA PAGE 17
• Presence in some of the fastest growing countries in the world
• Strong customer base in key countries
• South, East and South-East Africa well covered
• Access to West Africa’s largest market Nigeria
Regional presence and target frontier markets
ADC focuses on the banking and insurance sector in frontier markets of sub-Saharan Africa
Pan-African Banking Group
MIGA insurance Target
RoE >40% p.a.
Attractive Risk Return Profile
Your Gateway to Africa
Proprietary Investments + Insurance
Payment services, commercial and retail banks
Investment in high margin projects outside core focus
Consulting on investment opportunities
Advisory Services
2. Business model
Tanzania
Mauritius
Mozambique
South Africa Target countries
Equatorial Guinea
Rwanda
Nigeria
Angola
Kenya
South Sudan
Zimbabwe
Regional presence
Botswana
Uganda
Sierra
Leone
Ghana
Cameroon Zambia
Côte
d’Ivoire
Utrecht
ADC AFRICAN DEVELOPMENT CORPORATION YOUR GATEWAY TO AFRICA PAGE 19
Bigger Picture: ADC provides access to the increasing South-South trade in the shadow of the industrialised nations
USD 116 bn
USD 96 bn
USD 18 bn
USD 24 bn
USD 146 bn
USD 170 bn
• 1990 - 2008: World trade quadrupled and South-South trade increased more than tenfold
• Developing countries account for one
third of worldwide trade, half of which occurs within the South-South axis
• South-South trade will be one of the significant global growth engines in the next 10 years
• ADC’s team consist of experienced emerging market bankers with a broad network in the South-South axis
• ADC has access to an extensive worldwide network of natural resources experts through ABL Group & partners
• ADC facilitates access to resource-rich countries such as Equatorial Guinea and Zimbabwe OECD, Perspectives on Global Development 2010: Shifting Wealth, 2010 – South-South trade flows in 2008.
2. Business model
Utrecht
Africa Agriculture and Trade
Investment Fund2012
Utrecht
6
Fund structure
Senior Tranche
(A-Shares)
Mezzanine
Tranche
(B-Shares)
Junior
Tranche
(C-Shares)
Sponsor(s)
Institutional Investors,
Ultra High Net Worth
Individuals
Foundations
(Potential) Investors
Produce
against
paymentOff-takers
Outgrowers
Producer
Cooperative
Small to
medium
size
professional
farms
Issuer
Vehicle
Luxembourg
Certification,
Impact Studies
Other public
and private
investors
Local
Financial
Institution
Direct Equity & Debt
Senior loans
Risk Sharing
GuaranteesLoans
Investment Committee
Invest
ment M
anager
Intermediary
Senior loans
Risk Sharing
Guarantees
Loans
(in
kind)
Insurance
weather,
yield
Investments
Structure
Investors
1 2 3
1
2
3 The AATIF is structured to allow investors to come in at three different levels, each offering a unique risk/return profile with dividends
being paid following a waterfall principle.
The Fund targets small, medium and large scale agricultural farms as well as agricultural businesses along the entire agricultural value
chain which will be financed directly (e.g. cooperatives, commercial farms, processing companies) and indirectly via local financial
institutions or other intermediaries (such as large agribusinesses) which on-lend to the agricultural sector.
The AATIF is organised under Luxembourg law in the form of a public limited liability company. The Fund’s Shareholders are
represented by the Board of Directors. The Board of Directors appoints the Investment Committee which approves investments
(discretion) that are proposed by the Investment Manager and supervises the activities of the Investment Manager.
Board of Directors
General Meeting of Shareholders
Dis
cre
tion
Superv
isio
n
Contact Information
• ADC Investor Relations
- Grueneburgweg 18, 60322 Frankfurt am Main
- Phone: +49 69 71 91 280 119; [email protected]
- www.african-development.com
• Africa Agriculture and Trade Investment Fund Michael Schneider
