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

3. 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

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

5. 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 .

6. 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

7. 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

8. 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.

9. Basic IT Education for School(Bites )

10. Basic IT Education for School(Bites )

11. 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.

12. Kenani Housing
Bonds Dealing

13. Kenani Housing

14. Kenani Housing

15. 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

16. Slum upgrading project

17. 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)

18. 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

19. 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.

20. OUR CONTACT DETAILS AIB CAPITAL LTD 9TH Floor , Finance House ,
Loita Sreet ,
P.O.Box ,
Nairobi.
Phone : /
Fax :
Office Mobile Lines: /
Web:

21. 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