Selected experience

Verdigris has advised investors on more than 20 REIPPPP projects with a combined value of approximately R50 billion, leading to investment of approximately R6 billion. Selected engagements are grouped below. Several were completed alongside Prozesky Consulting.

Refinancing and capital raising

• Refinancing of twelve REIPPPP projects
• Refinancing modelling for a portfolio of three REIPPPP projects
• Arranged the first syndication of a project finance hedge to an institutional investor in South Africa: wrote and presented the hedging position paper to the client's investment committee, completed due diligence and quantitative assessment of the purchase of an interest rate hedge with an IPP counterparty, and negotiated cession of the hedge to the client
• Developed a limited-recourse term sheet for an institutional client's debt and equity investment into infrastructure assets
• Advised on an off-balance sheet funding structure
• Acted as development coordinator on a conventional thermal power plant IPP

Equity advisory and transactions

• Advised African Rainbow Energy on equity investment into the Tronox / SOLA commercial power projects
• Advised African Rainbow Energy on equity investment into the ARM / SOLA commercial power projects
• Advised Old Mutual Investments on investment into a PV and battery plant
• Acted for a client selling a portfolio of renewable energy IPP assets
• Acted for a client purchasing a school

Credit and debt investment

• Credit assessment for senior and mezzanine debt investment into several PV power plants for different institutional clients — several billion rand invested across the projects
• Credit assessment for senior and mezzanine debt investment into several wind power plants
• Co-completed credit assessment and negotiated loan documentation for a several-hundred-million rand debt and interest rate swap investment into a Concentrated Solar Power plant
• Credit assessment and presentation for an institutional client's investment into Kenyan sovereign debt
• Credit assessment and presentation for an institutional client's investment into a telecoms tower portfolio
• Investment thesis for an institutional client's preference share investment into portfolios of energy assets
• Authored a position paper on infrastructure as an asset class for an asset management client
• Trained a client's corporate debt transactors in project finance principles, and worked with them to assess several infrastructure transactions
• Presented a detailed explanation of how wind energy yield assessment bears on debt investment to a client's credit committee, with analysis of specific projects' wind regimes

Modelling

• Wrote a portfolio model covering ten energy projects
• Wrote a lenders' base case model for a conventional thermal power plant
• Converted lenders' base case models for conventional power and renewable energy IPPs into operational models — approximately twelve models
• Completed a mining model
• Developed an algorithm to allocate a client's sales so as to maximise revenues within given constraints

Valuations and expert work

• Valued several energy projects to meet a client's annual reporting requirements
• Expert valuation of an infrastructure company for a possible listing
• Valued the implicit option in non-standard convertible instruments

Governance

Non-executive director's services provided to:

• A South African bank
• A listed project bond SPV
• Listed and unlisted asset securitisations
• Commercial paper conduits
• Equity and commodity exchange-traded funds
• An independent school
• A listed industrials group