By Alex C
Rand Merchant Bank Nigeria is expecting enormous growth in its Nigerian business in 2014 as it expands its deal footprint across diverse sectors of the economy.
Michael Larbie, Chief Executive Officer, Rand Merchant Bank (RMB), said that the prospects for 2014 is encouraging, despite elections uncertainty which is to be expected.
RMBs signature deals for 2014 include the Lekki port project, a fertilizer project and an independent power plant. We remain ready to participate a lot more in the power sector.
“With Phase one of the PHCN privatization done, we think a lot more transactions need to happen to actualize the power targets of 40,000 megawatts. We think the successor companies to PHCN are going to need a lot of money maintain existing infrastructure and improve capacity generation,” Larbie explained.
Larbie added that RMB would be willing to partner with the Mortgage Refinance Corporation (MRC), in creating securitization structures that allows deepening of the mortgage market and involvement of PFAs and other investors into the real estate sector, by providing properly packaged real estate mortgage backed securities.
RMBs Nigerian businesses currently consist of financial advisory, structured products, corporate lending, trade finance, letters of credit (LCs), fixed income trading and FX trading. The bank expects to enter the stock broking and equities trading business once it puts its platform together and secures the necessary licenses from the regulatory bodies.
The need for infrastructure development in Africa is critical, as it emerges as a major constraint on doing business on the continent. African cities are seeing a rate of urbanisation that far exceeds the rate at which they can provide the required infrastructure. The area of agriculture and consumer goods in Africa is vast.
RMB has advised on and financed numerous infrastructure development projects, resource finance projects, mergers and acquisitions and property developments in Africa over varied sectors across 35 African countries. These sectors include energy, oil and gas, Information and Communications Technology (ICT), mining, infrastructure, financial services and transportation
Some signature deals RMB participated in 2013 include the $3 billion in local and foreign currency transaction for MTN, of which it participated to the tune of $200 million; Dangote’s $3.3 billion dollar deal for a 400,000 barrels a day refinery and fertilizer plant, and a fund raising for African steel mills a Nigerian based steel manufacturer.
It also concluded a transaction for the Africa Finance Corporation (AFC) late in 2013, as mandated lead arranger for a $250 million syndicated loan.
In the oil and gas space, RMB provided loans to the NNPC Exxon Mobil JV, was financial advisor and lender to Oando for the Conoco Phillips acquisition, and is “currently engaged with several indigenous companies on marginal field’s divestiture by Shell.
In the retail sector, Nigeria RMB Westport developed and let the Ikeja City Mall (the largest retail complex in West Africa) in Lagos$95-million.
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