Finance options :finding the money to oil the enterprise 19th Eastern Africa Resource Mobilization workshop

INTRODUCTION At AIB CAPITAL LTD, Formerly Afrika Investment Bank, based in Nairobi Kenya, we have built a track record of experience spanning over 10 years in the areas of stock broking and corporate finance. This has been achieved through tapping into the job market to secure some of the best talent in the market, to make up a strong team of professional staff and Board Members with diverse experience spanning: Investment banking   Commercial banking Stock broking Trading and dealing Fund management Capital mobilization Mergers and acquisitions

Products & Services Corporate Bonds Dealing Financial Services Stock We offer the following Capital Markets and Financial Services Corporate Financial Services Bonds Dealing Stock Brokerage

What is a Social Enterprise An corporate institution that seek to balance the material aim of the capital investor and the social benefit to the community . an explicit aim to benefit the community the material interest of capital investors is limited to the extent that it does not benefit the community .

Example of Social Enterprise East African Breweries Developed the Senator Brand with the aim of getting people off illicit and unhygienic brews. Key Question What can people afford. 20/=. How can we produce it at the price and still make a profit . Tradition business model is Cost + Margin = Price

Sources of Finance Debt Equity Internally generated Funds Hybrids Loans from External Parties Equity From Shareholders new and existing . Internally generated Funds From profit or sale of assets Hybrids Combinations of the 3 above e.g convertibles

Basic IT Education for School(Bites ) Aim is to provide affordable IT education to primary and secondary schools Kes 120/= per month. Requires 30 million in Equity to fund a IT education program for Schools at the bottom of the pyramid. Require a further 100 million in debt to complete nation wide roll out.

Basic IT Education for School(Bites )

Basic IT Education for School(Bites )

Kenani Housing Aim to provide low to medium cost housing development 2400 units with a sell price of between 1.5 million and 7.5 million there is a gap of 120,000 housing units a year in that segment of the market yet only approximately 35,000 units are being built annually out of which only 6,000 may be considered low income housing Total project cost 6 billion Off which 600 million will funded from equity shareholders . 2 billion in debt from development finance institutions . The balance for internally generated fund I.E roll fund form one phase to the other.

Kenani Housing Bonds Dealing

Kenani Housing

Kenani Housing

Slum upgrading project Aim is build and transfer to it member who are currently slum dwellers 3000 two bed room unit a estimated cost 900,000 per unit. Land as already been secured next to the slum . Need to borrow about 3 billion in 3 phases of about 700 million each . Arrange mortgages for the members in-orders to retire existing debt . 800 units are available for sales to 3rd parties in orders reduce overall project cost

Slum upgrading project

Our Experience ISSUER ROLE VALUE OF TRANSACTION Good African Coffee Lead Arranger Creation & Capitalization (Kshs 1 bn) Safaricom Joint Lead Sponsoring Broker Initial Public Offer (Kshs 50 bn) Wananchi Lead broker & Financial Advisor Private placement Housing Finance Lead Manager Balance sheet restructuring & Fund raising (Kshs 10 bn) inclusive of a possible in-market merger Karen Hospital Equity of Kshs 200 million & Kshs 100 million Loan Media Company Transaction Advisor Acquisition by a private equity fund for Kshs 2 bn City Finance Bank Due diligence & Subsequent Acquisition of small bank by private equity players Hotel Group Kshs 2 bn Equity & debt as well as a refurbishment of Kshs 5 bn Kengen Co-Sponsoring Broker (Kshs 8 bn) Nation Media Group Transaction advisor Commercial Paper Athi River Mining Limited Corporate Bond (Kshs 800 million)

Selected experience ISSUER ROLE VALUE OF TRANSACTION Heri Limited Transaction Advisor Acquisition of a property company for Kshs 600 million UN-Habitat Product Innovation Strategy for affordable Housing Anppcan Construction of 60 rental Flats in Kilimani Wakiri Properties Construction of 28 rental flats in Kilimani Manufacturing Company Financial Advisor An MBO of a manufacturing concern (Kshs 500 million) Micro Finance Company Merger, Business Plan, Strategy & advisor for registration by the CBK as a Micro Finance Bank Co-Transaction Advisor Fund raising for a 2,000 two-bed roomed housing units at an affordable cost of Kshs 0.25 million per unit financed with a ‘Micro-mortgage’ instrument. Jamii Bora Housing Principal advisor Private Equity Kitisuru Urban Residential Development

How the process work Initial discussion to understand the project. Sign engagement mandate . Research the project . Develop fund structure . Draw up Information memorandum. Approach potential investors and lending institutions.

OUR CONTACT DETAILS AIB CAPITAL LTD 9TH Floor , Finance House , Loita Sreet , P.O.Box 11019 -00100, Nairobi. Phone : + 254 20 2210178 / 2212989 Fax : + 254 20 2210500 Office Mobile Lines: +254 725 965 555 / +254 734 965 555 Email: Info@aibcapital.com Web: http://www.aibcapital.com

Paul Wachira Mwai Paul Wachira Mwai is the Chief Executive Officer AIB Capital Ltd a leading corporate finance advisory and stock broking firm in Kenya . Paul has over 20 year experience in Investment banking, having worked various departments within the Barclays group, including Barclays Merchant Finance Ltd (BMFL) and Barclays Dealing Centre, before joining the Barclay-trust Investment Services Group in 1998 as a Fund Manager. He moved to Old Mutual Asset Managers following the acquisition of Barclay-trust by Old Mutual in October 2002 as a Senior Portfolio Manager and Asset Allocation Strategist. He joined AIB Capital from African Alliance Investment Bank where he was Chief Executive of the Asset Management Company . MBA – Strathmore Business School Bachelor of Business – University of Southern Queensland. Associate of the Chartered Institute of Bankers Investment Management Certificate from UK Society for Investment Professionals