Who we are

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ERASMUS INVESTMENT INTERNATIONAL SA, a public limited company pursuant to the laws of the Grand-Duchy of Luxembourg, having its registered office at 36, Avenue Marie-Thérèse in L-2132 Luxembourg, Grand-Duchy of Luxembourg, and registered at the Luxembourg Companies Registrar under number B.176807, hereinafter referred to as ERASMUS, In Rwanda represented by Rwanda Chamber Foundation, established in Oegstgeest, the Netherlands, Chamber of Commerce No. 27371119, hereinafter referred to as RCF

Erasmus has access to a trading system that is used worldwide to finance large-scale projects with a humanitarian character. The so called Private Placement Programs (PPP) generates cash by specialized, discreetly operated Trading Programs, exclusively for banks.

www.rwandachamber.org Folkert Castelein

Erasmus Investment International (EII)

• EII has access to Investment Capital.• Creating fixed assets & sustainable(new)

private business• EII as majority shareholder • Long term employment• Educational programs.• No Exit strategy

Why investing in Rwanda?

• The business climate after 1994 completely changed: low corruption, safe, clean

• Vision 2020 after the Genocide matched with the EII requirements

• Good Business Climate and legal structure• Serious National Ambition• International Focus• EDPRS II

(Rwanda planning 2013 – 2018)

How we work: “Rules of engagement” If GoR and the local private sector deliver feasible and do-able projects within the requirements of EII, sustainable and really strengthening the private sector, making a difference for the country, then EII will make this long term investment. EII does not subscribe on tenders.

-EII will be and stay a majority shareholder in all entities created under the investment program. Minimum shareholding position will 2/3 of total issued shares, staying in control of the assets.Max. 1 / 3 is open for co-investors.

- EII will not pre-finance research, formulating business cases and investigations. That is up to the potential foreign co-investors, Rwandan private parties, and international suppliers.

- After a positive decision of the financing platform, parties will get their pre- investment back or they will get shares for it with a good leverage

- EII invested money from the financing platform stays in the country (no exit strategy , it is a perpetual bond at zero interest) and most of the profit and all sold shares and assets will be re-invested-The business case must be positive because without profit no company will grow, dividend is needed for co-investors, EII dividend will cover costs and will finance the non-profit side program (infrastructure, housing, schools, education, healthcare)

-Co-investors may des-invest on agreed terms and EII will buy their shares

For Rwanda we selected 3 domains of high priority:

1. For Agro-Food and Live-stock: contribution to the food security and the export power of the country. Development of land.Added value in PHHS, packaging and distribution. Supply Chain optimization is a key-item including, higher yields, better seeds, fertilizers, trainingFactories for the processing of agri-products

2. Low cost and affordable Dwelling Units in sustainable, green pilot neighborhoods, and in addition in tier-2 cities

3. Production of sustainable Energy for the projects and delivery to the National Grid

EII only invest if private sector parties involved in the projects, being able to take over management and expand the activities in the future.These parties should gather the right competences together being able to manage large operations. We will facilitate knowledge transfer and coaching.

Investment in the local private sector

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ERASMUS INVESTMENT INTERNATIONAL (EII)

BOARD OF DIRECTORS

MAIN EPC (M) CONTRACTOR

STRATEGIC ADVISORY COMMISION.

MAIN EPC CONTRACTORCONSORTIUM (JV)

SUBCONTRACTORSSUBCONTRACTORS SUBCONTRACTORS

GREEN BUSINESS HUB RWANDA HOLDING COMPANY

EPC Main Contractor ENERGY, LOGISTICS AND

EDUCATION

EPC Main Contractor AREA DEVELOPMENT AND

CONSTRUCTION

EPC (M) CONTRACTOR

EPC Main Contractor AGRICULTURE AND

LIVESTOCK

EPC (M) CONTRACTOR EPC (M) CONTRACTOR

Top level structure for implementation

Structure for operation

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In Rwanda EII will work with a new legal entity: Green Business Hub Rwanda Holding (GBHR). Under this Holding we create 3 Divisions for the 3 clusters of activities.Per Division we will have operational companies / Ltd’s . In total about 50.

For the operational companies:Option 1:-GBHR might create a new legal local entity (Ltd.) per project or group of related activities

- local private parties and foreign investors can get or may buy max. 33% of the shares. They will receive a leverage in the number of shares, up to a factor of 10, depending the moment they step in

- They can increase the number of shares by getting dividend (partly) in shares or as a bonus

-Local Rwandan management will be responsible for the company-GBHR will keep the majority of the shares to control the assets, monitor strategic decissions, secure that part of the profit will be re-invested again in the company

Principles of structure

Option 2:-EIR might acquire 67% - 100% shares of a local company.-The owner(s) / management team will cash or keep shares and shall take the responsibility for the company at a salary and a bonus construction.-Depending the value of the company and may be additional co-investment they will get a leverage of the shares -After acquiring the shares by GBHR, GBHR will start investing in equity of the company

DividendNet profit is available for dividend-The minority shareholders get their dividend-From the remaining dividend, 20% - 25% will go to the reserves of the company for growth-The remaining part goes to GBHR to:

- pay dividend to the co-investors at that level- cover administration / overhead costs- finance the non-profit side program in Rwanda- re-invest in other projects in Rwanda

Goal of the Investment program

• Low cost & Affordable housing, Infrastructure: $ 850 M

• Food security: $ 600 M

• Sustainable energy: $ 350 M (incl. option)

• Enabling: $ 100 M

Options to be decided in the FEED phase: US$ 200 Million

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Area Development & Construction

a. Dwelling Units & non-residential b. Infrastructure & utilitiesc. Factories related to construction

industryd. Other buildings for factories &

installations

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EPC to be selected

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Agriculture & Livestock

a. Staple crops incl. irrigation , PHHS, and Horticulture

b. Factories food processing, enabling factories and Slaughtering & meat processing

c. Poultry Industry d. Fish Farming & Fish feed factory

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Sustainable energy & water-management

• Biomass to electric Power and biogas• Solar PV energy • Hydro Power• Option: Methane to Power

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• Logistics & construction equipment & mechanization & workshops in a logistic(s) center

• Education and (vocational) training

Logistics & education

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Project locations (blue=energy, red=housing, green=agriculture

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Timeline

• Business plan development completed in January 2015• Preparing EPC contractor(s), March – April

• EPC Consortium contract in May

• Planning: start June 2015, depending budget• Completion 2018

• Continuation of the investments of returns 20 – 25 years

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LOI’s

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# LOI between EII and the RDB, signed on November 28, 2012# LOI between EII and the Mayor of the City of Kigali, signed on January 23, 2014. Extension letter signed September 18, 2014# LOI between EII and the Minister of Agriculture and Animal Resources, signed on 20 December 2013Extension letter signed September 21, 2014# LOI between EII and the Minister of Trade and Industry, signed May 07, 2014# LOI between EII and the Minister of MININFRA is pending

Current total value of the financing is USD 2 billion to be invested in 3 – 4 years

Next steps

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1. EPC consortium signs a contract with Erasmus

2. EPC consortium delivers POA and forecast based on estimated costs for the FEED phase, followed by real costing after the FEED phase (pre- and final calculation)

3. After the detailed design and calculations we sign the final contract for realization per project

(We can start a project when the FEED phase for that project is finalized and the implementation is contracted)

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