DECILLION ENTERS PROJECT FINANCE MARKET
Decillion is to enter the project finance market, especially in Africa, after
acquiring a business which concentrates in this field.
Decillion, a niche financial services company listed on the JSE, has acquired
Chesterfield Finance Solutions SA (Pty) Ltd for an undisclosed sum. Chesterfield
was a newly formed business started by Alec Theunissen, previously head of
credit insurance at Export Credit Insurance Corporation, and a former advisor on
projects to the Credit Guarantee Insurance Corporation of Africa
Theunissen will head a new division, Decillion Project Finance. It will
initially consist of a three-man team with a specific focus on the African
continent. Collectively the team has 37 years" experience in project finance in
Africa and elsewhere.
"Project finance remains one of the fastest growing debt markets in Africa,"
Theunissen said. "It is increasingly being pursued by foreign banks who value
the high dollar-based revenue streams and the ability to ensure credit with
large international insurers.
"There are significant opportunities in this market for South African financial
services companies because of the increasing expansion into Africa by South
African businesses and international companies with operations here."
The division will report to Trevor Davis, who heads Decillion Capital. Davis
said the new team brought expertise that would benefit the company and its
clients.
"Project finance requires expertise to remove credit risks. The new team has the
ability to analyse the risks in projects and to structure the project, its cash
flows and innovative credit insurance to provide the project sponsor with a
commercially bankable solution.
"This gives us new opportunities, such as providing our construction company
clients with financial support for their projects in Africa. It also provides
further structuring opportunities for our hedging products teams," Davis said.
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