Projects suitable for Private Placement

Amarog Capital - Infrastructure financing

Capital Projects

Amarog Capital Private Placement bonds are suitable for capital projects. Most projects involve the construction or refinancing of infrastructure, real estate projects or regeneration sites. Amarog Capital designate bonds require the assets (existing or to be constructed) to be sequestered in a Special Purpose Vehicle as security for the duration of the term.

Amarog Capital Revenue Stream

Revenues

Suitable projects should have definable revenue streams that are created by the capital assets. Amarog Capital bonds are secured both by the project assets held in the SPV and the projected revenues. The more secure those future revenues can be made, the less risky the bond. Suitable revenue streams include:

  • Government guaranteed revenues/grants (e.g landlord, payer on behalf of social tenants, purchaser of outputs)
  • Contracted revenues (off-take contracts): for further purchase of energy, minerals.
  • Task incremental Finance/Land Value Capture
  • Leases and PRS sales
Amarog Capital Revenue Stream
Amarog Capital Group Kenya

Investment Grade

Many Amarog Capital investors look for bonds that have a shadow or formal credit rating that makes them ‘investment grade’ or higher. This means a minimum credit rating of BBB- (Standard & Poor’s) or Baa3 (Moody’s). Projects that have a government guarantee, or water-tight off-take contract are more likely to be designated investment grade. Amarog Capital Pilots work with a number of market participants including insurance companies and AAA-rated offtake purchasers to help underpin commercial risks where this is not possible.

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