To finance the construction of tourism facilities and infrastructure agreed for support under the 

 ConTour product.

 

Developers with agreements with hotel operators who meet the following conditions:-
• Registered in an African country with at least 40% African ownership (in terms of ultimate beneficial owners);
• If not registered in Africa, it must have a minimum of 60% African ownership (in terms of ultimate beneficial

   owners);
• The company must satisfy the Consortium’s Know-Your-Customer (KYC) and Anti-Money Laundering

  (AML) and Anti-Terrorist Financing conditions;
• Proven track record of at least 5 years in managing/operating hotels of international standards in a multiplicity

  of African countries;
• Able to offer Global Reservation Services;
• Financially sound; and,
• Must demonstrate ability for creating value in hotels it manages.

 

Tourism projects in the following areas:
• Cities targeting business and conference tourism
• Resorts targeting leisure tourism
• Ecotourism

 

ConTour Africa will not support:
• Projects that promote immoral activities;
• Gambling facilities, although small casinos can be one of the offerings of hotels that may be supported;
• Projects that destroy the environment or the culture and tradition of the host community;
• Projects that have heavy religious bias.

Eligible Countries:   

• African countries that have common membership in Afreximbank and Shelter Afrique (the “Common Member

  Countries”).
• Projects in Non-Common Member Countries may be financed if substantially (60%) owned by entities in

  Common Member Countries and it can be shown that up to 40% value-added will accrue to Common

  Member Countries; and if such a project is capable of promoting African trade and culture and attracting

  tourists to the Common Member Countries.
 
Type of Financing: 

Direct loans to developers and entrepreneurs; lines of credit to banks; loan guarantees to viable projects; technical assistance.

 

To be determined on a case-by-case basis, taking account of project cost and project cashflows.

 

US Dollar, Euro, Kshs, CFAF and any other currency as may be available.

 

A fixed interest rate on disbursed amounts, a variable interest rate based on Shelter Afrique base rate plus a margin or floating rate based on Libor plus a margin for US Dollar loans or floating rate based on Euro plus a margin for Euro loans. Other local currency interest rate will be Shelter Afrique’s base rate plus a margin.

Tenor/Final Maturity: Depends on the borrower, project being funded and time to Project Completion, but in any case will not exceed 5 years.
 
Conversion Decision Point/ Refinance Trigger: 

The Conversion Decision Point (CDP) is the date at which the project is completed and Shelter Afrique can demand a refinance from Afreximbank under the term of the Limited Recourse or Contingent Guarantee.

 

FEES:
 
Appraisal Fee: 

0.5% of the loan amount.

 

1% of loan amount upon signing of the Loan Agreement.

 

0.85% per annum of any undisbursed loan balance and shall start to accrue ninety days after the loan signature. The commitment fee is payable quarterly on each payment date.

Loan Management

0.5% per annum on any disbursed and outstanding loan amount payable.

Termination Fee: 2% of any aggregate principal amount cancelled or not drawn down after the execution of the loan agreement.

 

US$ 10,000 for any material changes in the signed loan Agreement granted by SHELTER-AFRIQUE.

Project Management Services Fees: Shelter Afrique will charge an appropriate fee for project management services and will also be reimbursed expenses. The fees will be determined on case by case basis depending on:-
i. Reimbursable expenses i.e. direct costs associated with the project (travel costs, subsistence, advertising,

   tender reimbursements etc); and,
ii. Project management fee which will vary from 2% to 5% of the total project cost depending on the size of the

    project, complexity and other factors.

 

GUARANTEE:
 
Guarantee Fee: 

An agreed percentage chargeable on the guaranteed amount is payable upfront and at every anniversary of the agreement;

 

The OF will require equity commitment from promoters the level of which will be agreed but in any event not less than 30% of the total cost.

 

Will be made based on work progress or agreed milestones and payment certificates duly signed and authorized by relevant professionals supervising the project. A project account will be established to receive disbursements.

 

Quarterly or semi-annual installments after a grace period of between 12 and 24 months. Bullet payment from the RF will be allowed for the full or part loan.

 

To be determined on a case-by-case basis but will include:

Fixed and floating charge over project assets; assignment of project receivables; assignment of Hotel Management Contract, Construction Contract benefits, Licenses and Permits; Charge over agreed Project accounts; assignment of insurances, personal guarantee of Key Promoters; and local bank guarantees (where necessary). These collaterals will be assigned and held by the Security Trustee in trust for Shelter Afrique and other Lenders.

 

Take Out Facility Availability of take out facility from Afreximbank by way of RF with irrevocable mandate to Afreximbank to pay Shelter Afrique either partially or in full on completion of the project. The terms and conditions of the RF shall be agreed between the developer/promoter and Afreximbank.

Others: As stated in Shelter-Afrique’s General Conditions Applicable to Loan and Guarantee Agreements

 

Application Process: 
Application may be sent to Afreximbank and/or Shelter Afrique using the contact details below. Such an application should contain the following:
• Detailed Information on the Project Promoters, including Company Profile and most recent financial

   statements (immediate past 3 years).
• Feasibility and Market Study for the Project.
• Preliminary Business Plan covering 15 years projection.
• Proposed Operators and their detailed profile.
• Proposed brand and brand information.
• Any initial Engineering Design
• Proposed contractors.
• Title to proposed property on which project will be developed.
• Copies of Governmental approvals.

 

The Consortium may appoint independent consultants to conduct detailed due diligence on the Project, including review of the Business and Marketing Plans, the design work, etc.