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Realising Energy Sector Opportunities with Cresco
With offices in South Africa and Mauritius, Cresco will assist your project in unlocking its potential and success.
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Introduction to Cresco Transactional Advisory
Project Finance Advisory
Financial Modelling
Export Credit Agency & CPRI Advisory Advisory
Due Diligence
Commercial Project Management
Cresco is a boutique financial advisory firm having as its core service the rendering of assistance to project promoters, across various industries and sectors, in the development of projects to a bankable stage and marketing those projects to investors and financiers.
Cresco provides a full range of advisory services to both private and public sector bodies. Whether you are a private sector developer or a public sector procurer of a PPP project,
Cresco is able to partner with you and create the opportunity to move your project up the value curve from concept to operations.
Cresco’s core services:
Cresco office’s in South Africa and Mauritius:
1st Floor, 267 West Building, 267 West Avenue, Centurion, 0157
8th Floor, Regus, Ebene Views, 66C2, Cybercity Ebene
Cresco offers a full range of project finance andtransactional advisory solutions throughoutSub‐SaharanAfrica tomeet the diverseneedsofits clients in financial strategies, financialmodelling, fund raising and commercialmanagementof projects.
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Introduction to Cresco
Established in 2005 on a philosophyof entrepreneurial thinking, Crescooffers its clients advice on nicheproject finance solutions and providestransactional project development andimplementation support outside oftraditional balance sheet financesolutions.
Cresco has the necessaryexperienced resources andspecialist expertise to support theentire project development processfrom inception to operations. Thekey team members havebackground in commercial banking,development finance and utilities.
With deep sector knowledge andexpertise Cresco’s team providessupport throughout the projectlifecycle. A local team with specialistglobal insight Cresco has a broadrange of relationships with potentialpartners and equity funders on theAfrican continent.
Financial modelling scenario and sensitivity analysis drives many key decisions
Cashflow is key
Cresco will structure the optimum funding strategy for a particular project
Right funders per asset class & country
The Cresco team will market the project to the most appropriate funders, matching the risk profile of
the funder with that of the project, thereby achieving competitive pricing
Following a key project risk analysis approach, Cresco’s project evaluation provides the outline
for opportunities and strengths and defines what additional capacity / requirements will be needed
for the project to be bankable
Cresco is able to fit seamlessly into your project development team: adding capacity
or fully outsourced solutions
Cresco offers a full range of project finance and transactionaladvisory solutions throughoutSub‐SaharanAfrica tomeet thediverseneeds of its clients in financial strategies, financial modelling, fundraisingandcommercialmanagementof projects.
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Cresco’s Coverage:Key sectors focus
Cresco is a specialist in raising finance, having been at the frontline of project financing of a wide range of projects across many industries throughout Africa with many well known brands in the key sectors
Energy Infrastructure Mining Health
Water & Sanitation Transport Agro
BeneficiationReal Estate
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Cresco’s Experience: Recent African Projects
Market and sector championsprovide significant efficiency ingettingaproject market ready. Cresco has the specific sector experience tobridge the gap between various stakeholders – lenders, off‐takers,governmentandofcourse investors– to result ina successfulproject.
EnergyMaamba Integrated Power Project300 MW coal fired power project in ZambiaIntegrated coal mine & transmission lineMining, generation, transmission and water pipeline asset with multiple lenders~USD 800 millionFinancial close in July 2015
REIPPPP projectsFinancial modelling, bid management and compliance of portfolio of projects throughout the programme bidding windows
Kathu Concentrated Solar Project100 MW concentrated solar power project in South AfricaGeneration and transmission asset with multiple lenders~ ZAR 10 billionFinancial close in 2015
Hybrid Power IPP Procurement for mines in Tanzania, Guinea and MaliTransaction advisory to procure diesel/HFO solar hybrid power
African Projects & Identification ReviewAfrican projects identification and assessment across various renewable energy technologiesIn-country research, due diligence and feasibility work
Refinance and Expansion of Power PlantFinancial modelling and financial advisory services
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Cresco’s Energy Experience: Presence in Africa
Cresco has experience of raising project finance for projects in variousindustriesacrossvarying levelsofpoliticallydifficult jurisdictions.Flags denote recent projects credentials in countries with additionalinformationonselectedprojectsacross sectors insub‐SaharanAfrica :
COTE D’IVOIRE
Financial modelling
700 MW IPP
NIGERIA
Financial advisory, financial modelling and valuation
Hydropower off-takers
NAMIBIA
Financial advisory and financial modelling
250 MW HFO and Solar hybrid
SOUTH AFRICA
Financial advisory financial modelling and bid compliance
Throughout the REIPPP rounds across all renewable energies
KENYA
Transactional Advisory
Commercial review of hydro facility
TANZANIA
Transaction advisory Hybrid Power IPP Procurement
ZAMBIA
Financial modelling
40 MW Hydro feasibility
SWAZILAND
Feasibility, Financial advisory and financial modelling
Integrated Sugar Project
MOZAMBIQUE
PPA Advisory, due diligence & PRI
Strategic off take for 300 MW
LESOTHO
Financial modelling Transmission line project feasibility
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Notable Project:300 MW Maamba Integrated Coal Mine Power Project, Zambia
PROJECT DEBT
USD 515 m
DFI LENDERS
USD 150 mCOMMERCIAL LENDERS
USD 365 m
Maamba Collieries’ fully integrated coaland power project in Zambia reachedFinancial Close in July 2015. Cresco wasappointed as joint financial advisor alongwith Barclays with the responsibility for thetransactional and project finance advisoryservices. These included a comprehensiveanalysis of risks and the identification ofsolutions to mitigate such risks,preparation of the project informationmemorandum, the development of anoptimal commercial funding structure andthe development of a robust financialmodel for the project.
This is the first private powerproject in Sub-Saharan region toreceive export credit agency(ECA) insurance cover fromChina Export and CreditInsurance Corporation (Sinosure)
Project’s accolades:
• Power Deal of the Year for Middle East and Africa | Awarded by Project Finance International of Thompson Reuters
• Project Finance Deal of the Year 2016 |Awarded by World Finance
• Deal of the Year | Awarded by Global TradeReview
• Middle East and Africa – Deal of the Year |Awarded by Trade Finance of Euromoney
• Best Natural Resources Deal: Africa |Awarded by EMEA Finance
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PRE-FUNDING
FIN
AN
CIA
LC
LOSE
POST-FUNDING
Concept Pre-Feasibility
Bankable Feasibility
Fund Raising
Implementation/ Construction Commission Operations
Cresco’s Experience: Services Through Project Development
Crescohasbeen involved innumerousprojects at various stagesof theproject development cycle. Below is a selection of project credentialsillustratingCresco’sexperiencewithin thedevelopment lifecycle:
Technical Completion
Financial Completion
COAL MINE AND 600 MW POWER PLANT
LESOTHOTRANSMISSION LINE
EXPANSION
MAAMBA INTEGRATED COAL AND POWERPROJECT
LANDFILL GAS TOELECTRICITY
PROJECT
NEUSBERG HYDROPROJECT
Energy Energy Energy Energy Energy
Pre-feasibility study for power project in
Botswana
Financial modelling and financial inputs
and stakeholder engagement
Full financial advisory services and financial close support for 300 MW Coal fired power
plantIncluding accession of additional senior
lenders and financial modelling monitoring during construction and operations phases
SPV administrative services; regulatory and governmental
reporting
Construction and operations
monitoring and debt restructuring
services for 10MW Hydro Project
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Cresco’s experience:The funding market
Cresco is experienced in engaging with all funders from both the investorand lenderperspectiveacross theproject fundingtimeline.Liquidity is available for good quality, well structured packaged projects.
Project funding sources
Development finance• Preparation funding• Strategic partners• Bridging finance: security
Project finance: equity• Strategic partners• IPP’s• Institutional investors• Concessionaires
Project finance: debt• Commercial lenders• Export credit agencies• DFI’s• Institutional investors
Projects are likely to have different funding partners; for example some funders will not participate in coal but will be keen to participate on port and/or transmission line.
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Cresco’s Approach
Funding Raising
• Development/bridging finance
• Project finance: debt
• Project finance: equity
Strategy
• Finance risk mitigation strategy
• Fund raising strategies for Development, Equity and Debt
• Pro’s and Con’s to each strategy analyzed
Analysis
• Understanding project dynamics
• Project risk analysis
• Gap analysis
• Financial modelling
• Defining project requirements
Cresco’s experience is that “packaging the Project” for the rightfunders is key. A project of this size requires integrated involvementand different approaches to raise the significant peak fundingrequirement. Each sub‐project will have unique requirements andbespokefundingpackage.
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Cresco’s Value Add: Engaging the Funding Market
Independent & without conflict (with reference to MLA’s) Independent & without conflict (with reference to MLA’s)
Develop funding strategy after understanding project dynamicsDevelop funding strategy after understanding project dynamics
The successful funding package for the previous transaction is not necessarily the correct solution for this projectThe successful funding package for the previous transaction is not necessarily the correct solution for this project
Identify appropriate funders for each component of the projectIdentify appropriate funders for each component of the project
Access to a variety of sources of funding: both geographically and type of funderAccess to a variety of sources of funding: both geographically and type of funder
Build credible and detailed financial models to support the funding effortBuild credible and detailed financial models to support the funding effort
Assist with credit enhancement options: insurance, guarantees, etc.Assist with credit enhancement options: insurance, guarantees, etc.
PRE-FUNDING
FIN
AN
CIA
LC
LOSE
POST-FUNDING
Concept Pre-Feasibility
Bankable Feasibility
Fund Raising
Implementation/ Construction Commission Operations
Raising financing for real estate projects and obtaining appropriateterms for it (including price and maturity) are all about getting theright interconnection between liquidity, risks mitigation andstructuring. Managing the funding process through to financialclose is essential.
Raising financing for real estate projects and obtaining appropriateterms for it (including price and maturity) are all about getting theright interconnection between liquidity, risks mitigation andstructuring. Managing the funding process through to financialclose is essential.
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Cresco’s Value Add:Proven & Successful Track Record
Truly independentResponsibility only to
look after project’s interests and no lender
conflicts
ExperienceExtensive Africa and sector experience,
Proven funding structures
Extensive Network
Across the continent and world both in funding
and insurance “Existing relationships”
Personal Dedicated team who get intimately involved with
the projectName on proposal
working on your team
Cresco provides the opportunity to move your project up the valuecurve through the application of specialist project financing expertiseincluding financial, commercial and project management skills thatyourprojectneeds to rise to its full potential.
Cresco provides the opportunity to move your project up the valuecurve through the application of specialist project financing expertiseincluding financial, commercial and project management skills thatyourprojectneeds to rise to its full potential.
