African Alpha Investment Partners announced last week that it is backing Mauritius-based SERS Ltd, an equipment finance company. The debt transaction fulfills two goals; a partial re-finance of a debt financing the two parties concluded in October 2014, extending maturities and lowering SERS’s borrowing costs as well as providing fresh capital for new equipment purchases. Additional terms of the deal were not disclosed.
SERS serves corporations looking to acquire and operate assets in African markets with cost-effective financing solutions where provides corporate customers with cost-effective financing solutions in locations and situations where commercial financing is often unavailable, including, for example the Ebola-affected countries in West Africa. Some of the firm’s equipment financing clients provided essential services to the agencies operating in the recent crisis.
“We are delighted to be able to support such a high quality team in their efforts to grow their business while at the same time provide such essential support to the community,” commented Rupert Boyd, one of AAIP’ two founding partners. “It was a particularly difficult time for the region and it’s a testimony to the commitment of the company and the company’s clients that their expatriate management teams remained on the ground throughout the crisis working to provide a range of emergency support services which were so desperately needed.”
The transaction marks the fourth debt deal for AAIP, which also has done four equity deals. In common with other deals, AAIP’s investment company, African Alpha Business Angel Syndicate or AABAS is investing alongside AAIP. The firm, which provides corporate finance and advisory services to its client base of predominantly African companies and Projects in need of financing, has been active in a number of sectors, including power generation, alternative energy, real estate, leasing, logistics and e-commerce.