Debt financing of companies under creation, restructuring or expansion

Central Africa Investment (CENAINVEST S.A), which was jointly set up in November 1998 by FMO – a German Development Finance Company – and First Bank, is a venture capital management company whose objective is to meet the critical need for debt financing of companies under creation, restructuring or expansion.

Scope

With the exception of the arms and gambling industries, CENAINVEST invests in several promising areas with high added value such as:

•  Telecommunications;

•  New Information and Communication Technology (NICT);

•  Agro-processing Industry;

•  Chemical Industry;

•  Geological Studies and Building & Civil Engineering;

•  Insurance;

•  Pharmaceutical Industry;

•  Data processing equipment and components;

•  Farming and Animal breeding inputs and equipment;

•  Motorcycle and tricycle Assembly;

•  Hotel and Catering Industry;

•  Wood Industry;

•  Tourism.

Conditions for intervention

A pre-funding evaluation must demonstrate the project’s strength on the following 4 key points:

•  The project must have a strong growth potential;

•  It must be yielding a satisfactory profit;

•  The management must be made up of people with good managerial skills and whose expertise and know-how are complementary;

•  The project must demonstrate in-depth knowledge of the market environment so as to ensure the best distribution of goods and/or services offered.

Means of intervention

CENAINVEST’s vocation is to help companies carry out profitable investment by putting smart money at their disposal, monitoring their performances, advising them on management and giving them technical assistance. Companies benefiting from CENAINVEST funds must present an annual report of activities comprising, inter alia, financial statements certified by a qualified auditor. They are also bound to CENAINVEST by a follow-up convention whereby they are entitled to management consultancy services based on an analysis of information on the activity (statistical data on sales and operating charges).

Funding mechanisms

There are various types of funding mechanisms. Funding may be in the form of:

•  Equity investment (share subscription);

•  Equity loan;

•  Bonds;

•  Subordinated debts;

It is worth noting that equity investment or convertible loans are always minority interest, ranging from a minimum of 25% to a maximum of 49% of equity capital.

How to get funding?

There are two possibilities:

• If you have already prepared your business file, all you then need is to submit it to CENAINVEST S.A along with an application for funding.

•  In case you still have to prepare your business file, get in touch with CENAINVEST, which will eventually put its multi-disciplinary and experienced team at your disposal to help you compile your business file.

•  A limited partnership

Resources are placed at the disposal of your company for a maximum duration of seven (7) years and not subject to any guarantee.

At the end of the partnership, CENAINVEST moves out of your project by using one of the divestment schemes below:

•  By selling its shares to the project sponsors;

•  By industrial buy-out;

•  By loan repayment;

•  By listing of securities.

Visit the website ofcenainvest.