Investing Policy

Investment Objective

The Company's investment objective is to achieve significant total return to investors through investing in various infrastructure projects and related opportunities across a range of countries in sub-Saharan Africa.

Sector Focus

PME invests in infrastructure or infrastructure-related projects in the following sectors:

Transportation (rail, ports, roads, airports and distribution)
Telecommunications (mobile, cable and data transmission)
Energy (power and distribution, oil and gas infrastructure)
Water & Sanitation
Housing Infrastructure serving the above industries
Healthcare & Pharmaceuticals

Strategic Focus

We typically look at early stage investments or companies at an inflexion point in their development. Our experience in managing risk and adding value means that we look at stages of a company's development which many other investors ignore.

Part of our approach to risk management focuses on working with the best local partners. Our network throughout Africa allows us to ensure that we choose the right partner to grow the business and work within the community.

In all our investments, we seek opportunities that have the potential for dynamic capital growth over an investment horizon of 3 to 5 years.

Investment Quantum

PME will invest generally up to US$25 million in equity although our network of African and international co-investors allows us to lead the funding for larger equity commitments. In order to ensure suitable diversification in the portfolio, the Company will not, without Board approval, invest:

more than 15% of its net assets (at book cost) in any single investment;
more than 40% of its net assets (at book cost) in any one country; or
more than 30% of its net assets (at book cost) in any one industry or economic group.

Gearing

The Company will make use of debt facilities as required which will be secured against individual projects without recourse to the Company but such that the overall level of commercial debt will not exceed a debt:equity ratio of 70:30. This ratio is subject to review by the Board in light of prevailing market conditions.

PME's Value

PME seeks to add value in a number of ways through an active role with its investments:

Additional funding: we raise and structure debt through our close ties with all the major African banks and multi-lateral and international institutions. In addition, we can arrange the funding for much larger equity commitments through our network of African and international co-investors.
Strategic input: our experience in infrastructure development combined with a network of advisers and technical partners allows us to expand the horizons of our investments.
PME believes that the managers of the companies it invests in should be incentivised to fully maximise the potential of the value we can create together.
Although we seek a controlling interest, we are able to introduce flexible structures to accommodate and align the interests of all stakeholders.