The Directors of Kingston have a combined Corporate and Investment Banking experience in excess of 50 years. Below are examples of some of the innovative transactions which they have undertaken before; viz:
1.0 COMMERCIAL PAPER PROGRAMME
Part of a Core Team which put together a complex structured finance programme for enabling a regional African Bank raise US$ 500 million in the United States money markets through the issuance of commercial paper and using the proceeds for export finance. The programme was signed and rated in the United States where it achieved a rating of A – 1+ from Standard and Poor and F – 1+ from Fitch Investor Service, which are the highest possible ratings for such a programme. The structure involved a Delaware Corporation, whose sole purpose was to issue commercial paper and using the proceeds to purchase certain loans made by the Bank. This led to freeing up of limited capital resources of the Bank which were now used on lending activities which could not be funded through the commercial paper programme. Goldman Sachs Money Markets and Merrill Lynch Money Markets were the commercial paper dealers while Bankers Trust Company was the issuing and paying agent. Through the above highly innovative and structured programme, the Regional Bank became the first wholly African owned institution, to tap resources from the United States money markets.
2.0 GOLD LOAN FACILITY
Structured and put up the first Gold Loan for an African gold mining company outside South Africa.
A unique feature about gold loans is that they are relatively cheaper than Euro-Dollar loans, given the fact that gold inter-bank rates are worked out by subtracting the Gold Forward Rate (GOFO) from the corresponding London Inter Bank Offered Rate (LIBOR). Gold loans also provide a readily available hedging mechanism for a gold mining company.
3.0 STRUCTURED FINANCE
Structured the credit enhancement mechanism that enabled a syndicate of banks in an African country, put together a US$ 50 million long term facility to support the rehabilitation of the country’s International Airport in time for the Commonwealth Heads of State and Government (CHOGM) meeting, which the country in question hosted. The structure enabled the syndicated loan to have repayments locked in by way of assigning IATA receivables due from reputable and strong airlines flying into the airport, to the syndicate of banks through the Collateral Agent. The IATA receivables covered over-flight, landing and parking fees, which airlines pay to the Civil Aviation Authority of the country for use of the Airport as well as the airspace.
Concluded a US$ 50 million remittances backed structured long term loan from the Overseas Private Investment Corporation (OPIC) of the United States of America on behalf of an African Bank for on – lending to small and medium scale enterprises. The loan was structured in such a way that its repayment was linked to remittances home by Nationals in the Diaspora. The Bank in question was the most popular for home remittances by the Diaspora. This was at that time, the largest single US investment in that country, and the most innovative transaction, and won an award from the Banker Magazine.
Arranged financing for the construction of a 5 Star hotel, through debt for debt and debt for equity swaps structure, involving pipelined Russian debt. The structure involved sourcing Russian debt from holders at a steep discount, using funds from Senior Lenders and Shareholders and redeeming the debt from the Central Bank in local currency at prevailing exchange rates, and thus experiencing massive gains arising from currency depreciation over time. The redeemed local currency was then used to fund the hotel as Senior Debt and Shareholders Equity Contribution respectively.
Structured Africa’s first Debt for Nature Swap arrangement which involved buying pipelined debt at a steep discount from foreign holders with the proceeds redeemed at the Central Bank in local currency at prevailing rates. These proceeds were donated to the World Wildlife Fund (WWF) for its conservation activities in selected National Parks.
Part of a Steering Committee which was formed to lay the groundwork for the establishment of a secondary mortgage market (through trading of mortgage backed securities) in a certain African country. This was an initiative of the Treasury Department of the United States of America and the Country’s Central Bank, aimed at among others, creating liquidity for mortgage financing as a way of responding to the huge demand for decent housing.
4.0 PRE-SHIPMENT FINANCING TRANSACTION TO A MAJOR MINING HOUSE
Originated and structured a US$ 250 million pre-shipment commodity and contracts linked 5 year syndicated financing transaction for a mining house which at that time was the largest producer of copper and cobalt in Africa. The transaction, which at that time was the largest of its kind, and was voted African Trade Finance Deal of the Year by Euromoney Magazine, also involved an innovative swap of put and call options (collar) on the international prices of copper and cobalt.
5.0 SECURITIES EXCHANGES
Part of the Steering Committees that laid the groundwork for the establishment of securities exchanges in two African countries, with funding from the International Finance Corporation. The two markets are now fully fledges with both listed and quoted securities as well as cross-listings.