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AGF Magazine - April 2019 issue

  • In a region where only a minority of the population has access to a bank account and SMEs struggle to get financial help from traditional banks, Albert Alsina, CEO and Founder of Mediterrania Capital Partners, explains how the PE industry is becoming a catalyst for the African Fintech ecosystem’s development, enabling large-scale banking and supporting entrepreneurs and SMEs in their expansion plans (pp. 10-12).
  • In this month’s issue of Africa Global Funds, we also caught up with Kenneth Kaniu, Britam Asset Managers CEO, to learn about their anchor investment in Tiserin Capital, and the needs and constraints of institutional investors in Kenya and East Africa (pp. 14-15).
  • On the infrastructure front, we hear from Moritz Breickmann, Investment Director at African Infrastructure Investment Managers (AIIM) who showcases some successful airport redevelopments in Africa. Read on to find why airport infrastructure projects on the continent can provide attractive long term returns to investors (p.17).
  • In this month’s issue we also learn that the FTIF Templeton Africa Fund was merged into the FTIF Templeton Frontier Markets Fund. We speak with Ahmed Awny and David Haglund about the Fund and its African investments (p.16).
  • Finally, Rob Childs, Head of International for Prescient Fund Services shares his views on the global distribution challenges facing African fund managers and why the firm decided to domicile their offshore fund range in Ireland (p. 22).
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News > Asset Servicing

EFG Hermes concludes ASAI stake sale advisory

Africa Global Funds
July 15, 2018, 12:16 p.m.

Word count: 415

EFG Hermes, a financial services corporation in frontier and emerging markets has concluded its advisory to international microfinance lender ASA International (ASAI) on its £125m initial public offering on the London Stock Exchange (LSE).

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EFG Hermes, a financial services corporation in frontier and emerging markets has concluded its advisory to international microfinance lender ASA International (ASAI) on its £125m initial public offering on the London Stock Exchange (LSE).

With a 12-country footprint spanning Asia and Africa, ASAI is one of the world's largest private-sector microfinance institutions with c. 1.9 million clients.

EFG Hermes was joint bookrunner on the transaction alongside Investec, while Citigroup Global Markets acted as sole global coordinator and Keefe, Bruyette & Woods (KBW) as lead manager. 

The offering saw ASAI's selling shareholder, Catalyst Microfinance Investors (CMI), offer 40,000,000 shares or 40% of ASAI to institutional investors at an offer price of £3.13; accordingly, ASAI's total market capitalization at admission was £313m.

"This is a milestone transaction for EFG Hermes and one that marks the firm's first investment banking foray in frontier markets following the launch of our frontier strategy in early 2017," said Ali Khalpey, the London-based CEO of EFG Hermes Frontier. 

"With the successful conclusion of ASAI's high-profile IPO, we have once again shown our ability to bookbuild and transact in frontier markets with an unrivalled global distribution platform supported by world-class research, brokerage, and investment banking services," Khalpey added.

ASAI maintains a loan book with over 1.9 million clients comprised of low-income, predominantly female entrepreneurs across Asia and Africa. 

The global microfinance lender has outstanding loans of c. $300m and serves its customers through a c. 1,400 branch network with some 9,000 employees operating in India, Pakistan, Ghana, Nigeria, Philippines, Kenya, Myanmar, Sri Lanka, Uganda, Rwanda, Sierra Leone and Tanzania. 

"EFG Hermes has again demonstrated its ability to tap a global client base and utilize its unrivalled network of MENA clients to raise demand for compelling opportunities outside our traditional markets," said Mohamed Fahmi, Co-Head of Investment Banking at EFG Hermes. 

"The investment banking division has consistently been the MENA region's top-ranked ECM advisors by market share. Our vision is to replicate our MENA success story into newly-entered markets through finding attractive investment plays that cater to the appetite of our global network of clients," added Fahmi. 

EFG Hermes began executing its frontier expansion strategy in early 2017 and has since opened offices in Pakistan, Kenya, and Bangladesh and has acquired an FCA license to operate in the UK. 

These expansions have enabled the firm to offer a comprehensive suite of research, brokerage, and investment banking services to a broader network of domestic and international clients.

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