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Funding Infrastructures In Emerging Markets

Concrete Finance SRL was set up in 2016 with a focus on funding infrastructures in emerging markets, through the origination and financial structuring of complex projects.

In 2020, ITARE has decided to take control of Concrete Finance in the form of business line.

CONCRETE Finance’s work

Water and Energy
Logistics
Infrastructures
Social Facilities

In the years of operation, Concrete Finance has assisted in structuring the financing for major infrastructure throughout Sub-Saharan Africa, leveraging a combination of funding sources and insurance products.

With this business line, ITARE has the unique ability to assist borrowers and contractors in gaining access to the most competitive export credit system and arranging export credit funding for major infrastructure projects across the world.

The approach is to identify the most efficient financial structure given the nature of the infrastructure, the borrowing entity, the legal and procurement framework, the country political and economic outlook.

The Approach

Strategy and Institutional Relations

At inception, ITARE identifies the potential funding structure in support of a given project. It assists the borrower and the contractor in approaching fund providers and insurance products. The value-chain of the project is usually structured in accordance with the sources of funding. Through its network of contacts with ECAs, DFIs, international banks, and insurers, ITARE can leverage the most effective financial structure.

Business Development

Potential business opportunities can be identified by the borrower, the contractor, or directly by ITARE’s local team. ITARE works with the parties involved to analyse the feasibility of the project, its potential financial structures according to the different procurement modalities (e.g. sole sourcing/direct negotiations, EPC+F tenders), and the need for special project vehicles.

Finance for Projects and Clients

ITARE assists the borrower and the contractor to line up all available financing instruments (e.g. project preparation funds, commercial lending, export credit, development finance, debt and equity funds, guarantees) and assists the borrower in the financial negotiations with the lenders and insurers. Finally, ITARE follows up on the loan disbursement and the project’s execution and ramp-up.

Projects

Konza Technopolis

ITARE successfully arranged the funds (€ 392 million) for the Konza Technopolis Project, the first smart city in Kenya. The project involved a pool of international banks (Intesa San Paolo, UniCredit, and Société Générale) and SACE. The project’s financial structure is composed of an export credit facility, which is fully granted by SACE, and an uncovered commercial loan. This competitive financing package emerged as the winner out of an international competitive bidding process and it was crucial to secure the award of Phase 1 of Engineering, Construction, Procurement, and Financing of Konza Infrastructure to the Italian contractor, ICM. Konza Technopolis is a flagship Kenya Vision 2030 and aims to be a sustainable, world-class smart city and major economic driver for Kenya.

Water Projects in Kenya

ITARE successfully arranged the funding for a series of water projects in Kenya for a total amount exceeding € 700 million. Such infrastructures include:

  • The three dirt and rock-filled dams
  • The water distributions networks for the agricultural, industrial and domestic use
  • Hydropower generation units exceeding 60MW
  • Transmission lines
  • Ancillary work

All the relative financing packages are centered around SACE and involve banks such as Intesa San Paolo, UniCredit, and BNP Paribas.

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