Experience

Delphos International is different from other financial advisors. Since 1987, we have cultivated successful relationships with government and international financial institutions worldwide. We have leveraged these relationships to arrange over $10 billion in financing for clients in every region of the developing world across multiple industry sectors. Given our access to a wide range of capital providers, our clients are not limited to any particular region, industry or size. The projects listed below represent a selection of our experience.

Transmission Line Feasibility Study in Ghana

Delphos International won a competitive tender from GRIDCo, Ghana’s national transmission grid operator, to lead an advisory team of engineering, financial, economic, regulatory, and environmental experts to assess the feasibility of two new 161 kV transmission lines stretching more than 330 km in eastern Ghana. In addition to serving as prime contractor, Delphos prepared a proforma financial model, conducted sensitivity analyses, provided recommendations on potential financing sources, and reviewed key project transaction agreements. Delphos also conducted managerial training workshop for GRIDCo, which covered managerial aspects of electricity transmission infrastructure planning, including financial and economic planning and power purchase agreements. The $645,000 grant funding the tender was provided to GRIDCo by the USTDA.

 

Hydropower Project in Cameroon

Delphos International served as Team Leader of a consortium of financial, technical, market, legal/regulatory, and environmental experts retained by the Government of Cameroon to assess the feasibility of financing, construction and operation of a 61 MW hydropower facility and associated transmission infrastructure and upgrades in the northeast of the country. The consortium developed a capital expenditures budget and procurement plan for the generation and transmission infrastructure, examined the project revenue requirement and potential for sales to Chad and/or Nigeria, developed the framework for ownership and financing specifically tailored to the project to be used for attracting private sector owners- operators under IPP and/or PPP ownership, and concluded bankable cross-border power sales agreements.

 

Diesel and Coal Bed Methane Projects in Botswana

Delphos International served as an advisor to the Botswana Power Corporation ("BPC") on two fast-track IPP projects. The first was a 70 MW interim diesel-fired project to address the anticipated power shortages in Botswana in 2010. Delphos International successfully organized an international tender to identify a contractor and then completed discussions with the party chosen for a two-year renewable PPA. The diesel project came online in Q1 2010. The second is a 90-250 MW dual fuel project (diesel and coal bed methane) that addressed mid-term (2011-2012) shortages and may serve as a peaking unit long term. In these projects, the firm advised BPC on all aspects of sponsor selection, negotiating power purchase agreements, and other key documents.

 

Coal-Fired Plant in Botswana

Delphos International advised the Government of Botswana and Botswana Power Corporation ("BPC") on the financing of the 600 MW Morupule B coal-fired power project, including associated transmission and water supply infrastructure, with total project costs estimated at $1.6 billion. As sole financial advisor, Delphos International designed and organized a process for soliciting financing proposals from domestic, regional, and international financing institutions. Following receipt of more than 10 expressions of interest, the team analyzed and ranked the submissions, and based on our recommendations the client chose a financing plan involving a mixture of multilateral and commercial financing at very attractive rates and tenors. ICBC (China) provided $825 million over a 20-year term, backed by a Sinosure guarantee for the first 15 years and a partial credit guarantee from The International Bank for Reconstruction and Development ("IBRD") for the last 5 years. ICBC also provided a bridge loan facility of $140 million, guaranteed by its affiliate Standard Bank of South Africa, to help BPC meet EPC contract milestone payments while final approvals were being arranged for the term loan facility.

Along with Standard Bank, Delphos International also designed a hedging solution that converts the proceeds of the dollar financing into actual and synthetic Pula (based on a trade-weighted currency basket). Financial close on the ICBC facilities took place according to schedule on June 15, 2009. In addition, Delphos International advised BPC on the negotiations of a bankable coal supply agreement between MCL (a subsidiary of DeBeers) and BPC for the Morupule project. The transaction was awarded the 2009 Deal of the Year by Project Finance and Project Finance International magazines.

 

Heavy Equipment Leasing Feasibility Study in Cameroon

Delphos International was engaged by Diamond International, Inc., a private investment company in the U.S., who in partnership with Caterpillar Inc. has established Location Cameroon S.A., a Cameroon-registered company that will provide heavy equipment leasing, rental and services in West Africa. Delphos International successfully secured a $184,000 grant from the U.S. Trade and Development Agency ("USTDA") to fund a feasibility study, and subsequently lead the study that included an assessment of the market, operational, financial and legal viability of the project. Due diligence and analysis required numerous site visits to evaluate location, local partners, and market conditions.

 

Financing and Carbon Credits for Hydropower Projects in India

Delphos International has worked with Dodson-Lindblom ("DLI") on numerous occasions. The firm first acted as an advisor to DLI in 1999 by helping to raise $10 million in project financing for a 12 MW rehabilitation project in the State of Maharashtra near Mumbai, India; this was the first private hydropower project in India. In 2005, the firm helped DLI obtain an additional $27 million in senior debt from the International Finance Corporation ("IFC') and DEG (Germany) for the development, construction and rehabilitation of a cluster of hydropower projects in India totaling more than 60 MW. In addition to the debt, the firm negotiated a $19 million equity investment from a private equity investor. The firm helped the projects qualify under the Clean Development Mechanism of the Kyoto Protocol to support the sale of Certified Emission Reductions (Carbon Credits) to an AAA-rated purchaser, which boosted revenue by more than 10%.

 

Oil & Gas Pipeline in Colombia

Delphos International, as subcontractor to Granherne (a subsidiary of KBR), performed the economic and financial analysis to improve security of Ecopetrol's national oil and gas pipeline system from attacks and technical failures. Delphos International also developed a blueprint for financing the project.

 

Education in Bulgaria

Delphos International advised the U.S. Agency for International Development ("USAID"), which is the largest donor to American University in Bulgaria, on the University's financial sustainability, strategic positioning, and long-term capital expenditure plans. USAID used the team's analysis to evaluate the University's request for a multi-million dollar grant disbursement.

 

Investment Fund in Afghanistan

Afghan Growth Finance ("AGF") is a joint venture between Delphos International and SEAF, a private equity fund manager. In 2008, Delphos International structured and closed a $25 million facility to provide senior and mezzanine debt to companies in Afghanistan. Delphos International helped obtain $5 million in equity through a grant from the U.S. Department of Defense and further leveraged these funds with a $20 million loan commitment from Overseas Private Investment Corporation ("OPIC"). Subsequently, in 2010, OPIC committed an additional $30 million of direct financing and a co-financing line of $25 million. As of January 2011, AGF has approved a total of $19 million in commitments. In addition to generating growth in sales and profits, the partnership with AGF provides strong potential for portfolio companies to significantly increase in value over the investment term. Additionally, AGF investments have contributed to increased employment, better benefits, expansion of products and services, as well as greater penetration into export markets. Mr. William Delphos serves on the Board of Directors and the Investment Committee of AGF.

 

Power Generation Companies in Panama

The government of Panama sold controlling shareholdings in four generation companies through a competitive international bid. A subsidiary of The AES Corporation offered a winning bid of $91.7 million for 49% interests in two of the generation companies.

The AES Corporation also received a concession to build, own, and operate the 120-MW Esti power plant, a greenfield hydropower station in western Panama. Delphos International arranged $334 million in long-term, limited-recourse financing for AES Panama, representing approximately 85% of the expansion costs. The financing allowed the building of the Esti Project, the upgrade of the Bayano asset, and the refinancing of a $275 million construction facility that Delphos International also played an integral role in arranging. The facilities were provided by the International Finance Corporation ("IFC") under an A/B loan structure, Credit Suisse First Boston ("CSFB"), acting as a private placement agent for the IFC B loan, and EKN, the Swedish export import bank. The financing received a preliminary investment grade rating from Fitch of BBB-, piercing the sovereign debt ceiling of Panama.

Delphos International assisted AES Changuinola with the financing of a 223 MW hydroelectric facility with average energy generation of approximately 1,047 GWh. AES Panama was awarded a PPA for in September 2006, following a competitive bid, by two Panamanian distribution companies owned by Union Fenosa of Spain. The PPA has a term of 10 years starting in January 2010. In turn, AES Panama, the largest electric generation company in the country, agreed to terms similar to those in the PPA in an off-take contract with AES Changuinola. It is estimated that the project will cost an estimated $562 million. Delphos International assisted AES Changuinola in raising approximately $366 million in senior loans from local banks and arranged by Banco Continental de Panama. The financing closed in mid-2007. The project will address the need for new hydropower capacity in the country and will help reduce Panama's reliance on expensive imported oil. Based on its technical and other characteristics, the project is expected to be very competitive in Panama's liberalized mixed spot and contracting market.

 

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