Carbon Yield: Assessing the Climate Mitigation Impact of Green Bonds
On behalf of the Rockefeller Foundation, LHGP is developing the Carbon Yield (http://carbonyield.org/), a Green Bond GHG impact metric with technical assistance from South Pole Group and buy-side input from Affirmative Investment Management. The metric was launched in June 2017 as an open-source methodology, available to the whole market. Its aim is to quantify the climate change mitigation impact of Green Bonds in a simple and easy to use way. The intended outcomes of the project are broad uptake of the metric by the market resulting in increased flow of funds from investors, increased visibility of EM issuances and potentially the occurrence of price enhancement for those bonds with a higher impact.
Lion’s Head has acted as financial adviser and lead arranger to SA Taxi, a specialist South African lender providing secured finance to previously disadvantaged entrepreneurs in the public transport sector. Specifically, we helped the company raise funding in the USD market for a new asset-backed SPV, “SA Taxi Impact Finance”, raising a facility of up to $200 million from US development and impact investors, led by OPIC.
Financing Facility to support Vaccines for Epidemic Preparedness
Lion's Head chaired a taskforce around financial structuring for the Coalition for Epidemic Preparedness Innovations (CEPI), mandated by the Bill & Melinda Gates Foundation. LHGP worked closely with Tore Godal from the Norwegian Government, alongside a consortium of pharmaceutical partners including GSK, J&J, Sanofi and the EIB. CEPI launched in January 2017 with initial commitments of US$460m.
African Local Currency Bond Fund management
LHGP Asset Management, an affiliate of Lion’s Head, is the fund manager of the ALCB Fund (www.alcbfund.com), an initiative by KfW on behalf of the German Government. The ALCB Fund invests in first time corporate issuers in Africa in the sectors of financial inclusion, housing, renewable energy, agriculture, education and healthcare. To date, the Fund has invested around USD 40 million in 13 companies in seven African countries and currencies. Lion’s Head developed the Fund’s policies and are responsible for the Fund’s capital raising activities as well as day-to-day management of the Fund itself.
Chair of UK Government's Global Antrimicrobial Resistance Investment Fund
Lion's Head advised the UK Government’s Review on Antimicrobial Resistance, including analysis of potential structures for new funding mechanism, leading to the establishment of the £50m Global Antimicrobial Resistance Innovation Fund. Edge is Chair of GAMRIF.
Transaction Advisor for Diaspora Bond
Lion's Head is working alongside Goldman Sachs and Standard Bank to assist the Nigerian Debt Management Office in assessing market demand and structuring options for a bond to be offered to the Nigerian Diaspora in the US and Europe.
Lead Transaction Advisor on Grain Silo PPP
Lion's Head is leading a consortium that has been appointed by the Federal Government of Nigeria (FGN) to provide transaction advisory services for the concession and private operation of 33 grain silo complexes managed by FMARD.
Principal Investment and Advice to Agribusiness
Lion’s Head is a seed investor in Mtanga Foods Ltd, a mixed farming business in Southern Tanzania covering the livestock and potato value chains. In addition to a debt facility arranged with OPIC, we have raised capital from South Africa, Nigeria, Norway and the USA.
Advisor on structuring of KWPF
Lion's Head have been engaged by the Netherlands Water Partnership to structure the Kenya Pooled Water Fund, a facility that will issue bonds in the local capital market and make loans to Kenyan water service providers.
Capital raising for Rwandan Waste-to-Fuel Company
Lion's Head acted as financial advisor to Pivot Works, reviewing its business model and potential municipal financing sources for its waste-to-fuel plants in Sub-Saharan Africa, currently being piloted in Kigali.
Private Sector engagement for Climate Resilience
Under DfID’s BRACED (“Building Resilience and Adaptation to Climate Extremes and Disasters”) program, Lion's Head developed a portfolio of market-based interventions to improve climate resilience in rural Ethiopia with Farm Africa and Mercy Corps.
Financial Advisor to Kenyan Treasury
Lion's Head advised the Infrastructure Finance and PPP (“IFPP”) project through the PPP Unit in the Kenya National Treasury to support the development of capital market financing for PPPs in local currency.
Design of Ghana Infrastructure Investment Fund
Lion's Head advised the World Bank and the Government of Ghana on the governance structure, investment model and asset allocation strategy for the Ghana Infrastructure Investment Fund.
Financial Advice for a Ugandan Rice Company
Lion's Head is acting as financial adviser to Tilda Rice Uganda, assisting on a variety of strategic and financial activities.
2011, 2017, Uganda
Design of Debt Fund for Transport Infrastructure
Lion's Head is advising Trade Mark East Africa (TMEA) on the design of a new debt fund that focuses on financing trade-related infrastructure.
2016-2017, East Africa
Transaction advisor for Health Investments
Lion's Head was retained as Investment Strategy Advisor to Grand Challenges Canada, responsible for sourcing, diligencing, negotiating and structuring investments in neglected tropical diseases and maternal health. Lion's Head managed three investments to execution, including two innovative products for Zika control and a PPP for the supply of medical gases in East Africa.
Advisor on structuring an innovative financing vehicle for sustainable WASH services
The Global Investment Fund for Water (IFFW) is an innovative financing structure which aims to use a micro-levy from bottled water sales to finance under-funded WASH activities in developing countries. LHGP worked with a specially assembled group of experts from across the WASH sector to identify strategically significant use of proceeds for a potential WASH financing fund, and subsequently structured the fund to best complement the uses of proceeds identified. The mandate of the fund was defined to be the support of the provision of sustainable WASH services.
Feasibility Analysis of Regional Power Trader
Lion's Head advised Africa GreenCo on the feasibility of an intermediary power purchaser strategy in Africa, assessing the basic trading model, financial viability, capitalisation requirements and sources of funding, and impact on IPPs, utilities and local sovereigns.
2016, Sub-Saharan Africa
Financial Sustainability for Medicines Regulatory Harmonisation in the EAC
Lion's Head conducted a study on the financial sustainability of medicines regulatory harmonization in the East African Community, contracted by the World Bank. We were responsible for syndicating feedback from key stakeholders, in-country and international donors, and creating a financial model as well as a political roadmap and advocacy plan for implementing decisions.
2016, East Africa
Fund design for SADC Infrastructure Initiative
Lion's Head advised the Southern African Development Community (SADC) on the operationalization of their Regional Development Infrastructure Fund, focusing on large cross-border projects for regional integration.
2015-2016, Southern Africa
Debt financing for Kenya NHC
Lion's Head advised the Kenyan National Housing Corporation on the structuring of a debt issuance in the local market to finance construction of more than 15,000 units of affordable housing.
Fund design, structuring and investment advisory work for the Global Health Investment Fund
Lion's Head designed, structured and managed the Global Health Investment Fund, a USD 108 million fund financing the development of drugs, vaccines, diagnostics and interventions against diseases that affect low-income countries.
Financial Advisor for Regional DFI
Lion's Head advised the East African Development Bank (EADB) on updating their processes and procedures to increase internal capacity for infrastructure lending. This exercise is designed to increase the EADB’s capacity in regional markets.
2015-2016, East Africa
Global Parametric Insurance Platform
Lion's Head provided market scoping, financial structuring and implementation advice for Global Parametrics, an innovative USD 200 million facility to provide hedging and insurance for financial inclusion sectors in developing countries.
Structuring African Domestic Bond Fund
Lion's Head advised the AfDB on the structuring of the African Domestic Bond Fund, a $500m vehicle designed to improve local capital markets by purchasing bonds issued by African Governments in local currency or guaranteed by African Governments.
2015-2016, Sub-Saharan Africa
Innovative finance for Agriculture R&D
Lion's Head advised the CGIAR on developing and implementing an innovative finance strategy to double funding from USD1 billion to USD2 billion, in particular through a Returnable Capital Fund within the World Bank Group.
Capital Markets Advisory for Zambian Parastatal
Lion's Head provided Lusaka Water and Sewerage Company with structured finance advice, including working capital rationalization, financing options and a shadow credit rating, as well as an efficient FX risk management and hedging strategy.
Debt Financing and Credit Rating for KRB
Lion's Head advised the Kenya Roads Board (KRB) on a USD 300 million (equivalent) financing in the local capital markets sourcing capital from local financial institutions for critical infrastructure investment.
Investment Options for Flexible Fund
LHGP advised DFID on potential channels for allocating £30m to support private debt and equity funds targeting energy access. The options assessed included working with innovative first time managers, and larger joint venture models alongside other donors and development finance institutions.
Development of National Transport Funding Policy
Lion's Head was part of a consortium that advised TMEA and the Government of Kenya on designing new strategies to finance transport infrastructure through new funding sources and innovative revenue allocation. The mandate included review of the regulatory framework and raising public awareness.
2015, East Africa
Innovative financing for Kenyan Wildlife Service
Lion's Head advised the Kenya Wildlife Service (KWS) with IFC/World Bank Group support on a potential USD 50 million financing in the local market leveraging local institional capital and international development finance sources.
Emerging Africa Infrastructure Fund
Lion's Head was financial advisor to the Emerging Africa Infrastructure Fund (EAIF), a USD 700 m blended finance facility within the PIDG. This included capital structuring, portfolio analysis, ratings advice and fund raising.
2014, Sub-Saharan Africa
Innovative Finance for Global Education
Lion's Head reviewed innovative financing options for GPE to pilot, and then advised on implementation – particularly with reference to loan buy-downs and credit guarantees.
Fund Structure for Low Carbon Development
LHGP advised the UK's Department for International Development on the key considerations for using intermediated investment vehicles to support a range of low carbon / sustainable energy and land use issues, including pricing, ODA eligibility, management and implementation.
Interbank Lending Facility for Trade Finance
Lion’s Head assisted DFID in designing the Frontier Clearing Fund, a USD 200 million guarantee vehicle to promote interbank lending and improve the access of African SMEs to trade finance by hedging local currency exposure for international banks, including a KfW counter guarantee.
2014, Sub-Saharan Africa
Innovative Finance Options for Development
Lion's Head provided structured finance expertise to help Sida develop their strategy for innovative finance. This included a market survey recommending options for different instruments and structures based on lessons from other donors, including KfW.
2014, Sub-Saharan Africa
Structuring TMRC Transaction
Lion's Head assisted the Bank of Tanzania (BOT) and Tanzanian Mortgage Refinancing Company (TMRC) to raise USD 50 million long-term funding in the capital markets, designed to expand funding available to domestic financial institutions for mortgage lending.
Kampala Municipal Bond Finance Strategy
Lion's Head advised the Kampala Capital City Authority on its financing strategy. This includes executing a shadow credit rating, educating market participants and other sub-national entities on executing bond programs as well as a roadshow for KCCA Bonds.
Due diligence on Agriculture Commodities Exchange
Lion's Head provided due diligence and financial structuring advice for investors in the EAX, a Rwanda-based commodities exchange, including guarantee mechanisms for commercial bank warehouse receipt lending.
Infrastructure Investment Platform
Lion's Head advised the AFDB on a new initiative to mobilize large volumes of capital to fund infrastructure development from international capital markets - leading on the design and structure of a new USD1 billion vehicle, Africa50.
2013-2014, Sub-Saharan Africa
Raising Capital for Kilimo Salama
Lion's Head was retained as financial advisor by the Syngenta Foundation, raising more than USD 6 m from the divestiture of Kilimo Salama (now “ACRE”), its agricultural weather insurance business in East Africa.
Seed Capital for Renewable Energy Funds
Lion's Head advised UNEP on the structuring of the second SCAF platform, with DFID and BMZ. SCAF II is a TA facility to support high risk, early stage project development for PE funds targeting renewable energy projects.
Designing and Implementing the BioCarbon Fund
Lion's Head assisted the World Bank to design and implement the Initative for Sustainable Forest Landscapes, including a pilot sustainable agriculture project in Ethiopia. On behalf of the Carbon Finance Unit (CFU), we secured USD 280 million from public and private-sector institutions for ISFL.
Refinancing Network Rail’s Debt Portfolio
Lion's Head advised on the financial structure of Network Rail in the UK. We provided a financial analysis of risk management (swap) trades, debt maturity profile, inflation-linked bond issuance and fees for government guarantee.
2013, United Kingdom
Design Global Funding Platform for Nutrition
Lion's Head chaired a steering committee for the Children’s Investment Fund Foundation to oversee the design of a new catalytic fund for improving global nutrition. The Power of Nutrition initiative is a partnership of investors, donors and industry and seeks to unlock USD1 billion in new financing towards tackling children undernutrition.2013, Global
Marketplace for Nutritious Foods Assessment
Lion's Head advised GAIN on nutrition sensitive agribusiness incubators in Mozambique and Tanzania, assessing the funds’ business models and implementation options given the local market context.2013, Mozambique and Tanzania
Agricultural Infrastructure Finance
Lion's Head advised the PIDG on its strategy to finance agricultural infrastructure in Africa, including “value chain” projects (such as storage, logistics, cold storage, processing and distribution) as well as irrigation and feeder roads.
Developing the Rwandan Seed Sector
Lion's Head advised the Rwandan Government on private sector participation in the local seed sector including developing irrigation PPPs at the national research farm.
African Renewable Energy Fund Design
Lion's Head advised the African Development Bank on the design and execution of the USD 200 million “African Renewable Energy Fund (AREF)”. We developed the investment strategy, fund structure and recruited Berkeley Energy to act as fund manager.
2012-2013, Sub-Saharan Africa
African SME Financing Facility Design
Lion's Head worked with Dalberg and the Tony Elumelu Foundation to establish the feasibility of an SME financing facility in Nigeria, Tanzania and Kenya.2012-2013, Nigeria
Forest Carbon Partnership Facility
Lion’s Head helped the World Bank management team for the FCPF’s $650m Carbon Fund consider options for leveraging private sector capital and resources.
New Mechanism to Fund Polio Eradication
Lion's Head assessed the financial and economic case for a new capital market mechanism to leverage private sector funds for polio eradication.
Financing Low Cost Private Schools in Pakistan
Lion's Head advised DfID on the structure and marketing of a potential investment mechanism to expand the market for low cost private schools in Pakistan.2012, Pakistan
Local Currency Infrastructure Bonds
Lion's Head helped the AFDB assess the feasibility of implementing Infrastructure Project Bonds in 12 local capital markets: Kenya, Tanzania, Uganda, Zambia, Zimbabwe, Mozambique, Togo, Ghana, Nigeria, South Africa, Botswana and Namibia.
2012, Sub-Saharan Africa
Financial Advice to Mozambican Agriculture Business
Lion's Head advised a company owned by the Sainsbury family on the commercial and financial strategy for one of its businesses, a producer, processor and exporter of fresh vegetables in Mozambique.
Global Forestry Financing Options
Lion's Head advised the UK government on REDD financing options, developing financial models that incorporated the role of multilaterals and proposals by rainforest nations.
Public Private Partnership for Seed Registration
Lion's Head helped to formally structure the Tanzanian seed registration process, including setting up a new public private partnership with the government.
Offshore Wind Financing Strategy
Lion's Head worked with the Carbon Trust to set out financing arrangements for energy efficiency and off-shore wind projects in UK. This led to the establishment of the “Green Investment Bank” with more than USD 5 billion in capital.
Sustainable Investment Principles for Agriculture
Lion's Head helped the Rockefeller Foundation and GIIN develop a set of Generally Accepted Practices and Principles for agro-enterprise investments.
2010, Sub-Saharan Africa
Structure for Green Bond Expansion
Lion's Head supported the World Bank on expanding its Green Bond product for renewable energy and energy efficiency investment in Costa Rica and Slovenia.
2010, Costa Rica and Slovenia
Sustainable smallholder agriculture
Lion's Head advised on structuring the $3-5M agri-business TransFarm Africa Fund targeted at sustainable smallholder agriculture SMEs in Sub-Saharan Africa.2010, Sub-Saharan Africa
Capital Raising for an African Forestry Company
Lion's Head advised a pan-African forestry company, New Forests, on its capital raising strategy for a new investment in Swaziland, reaching out to investors in Europe.
World Cup Education Initiative
Lion's Head developed a concept for an impact investing product in African education involving corporate impact investors and governments around the FIFA World Cup in South Africa.
2010, South Africa
Beira Agriculture Growth Corridor Fund Advisory
Lion's Head advised on structuring a patient capital fund for the Beira Agricultural Growth Corridor in Mozambique as part of a larger infrastructure investment program.
Investing in Immunisation and Vaccination
Lion's Head has been a long term advisor to Gavi, helping to establish the “matching fund” for the group in 2011, as well as contributions from Anglo American, the ARK Foundation, La Caixa and J.P.Morgan via a new private financing scheme.