Herbert Smith Freehills has been ranked by Dealogic as the top legal adviser for African project finance transactions so far in 2013. In its recently released "Project Finance Statshot", Dealogic attributes the firm with 10.7% market share in Africa, having advised on US$1.3 billion of closed deals between 1 January and 23 August.
The firm advised on the largest African project to reach close during this period, representing the mandated lead arrangers Société Générale, Natixis and Crédit Agricole on the US$1.8 billion Anguille Field Phase III Gabon Oilfield. Other deals on which the firm advised include representing CfC Stanbic Bank and other lenders on the project financing of the US$200 million Kwale sugar plantation, refinery and power plant in Kenya – the first project of its kind in the country; and advising on the US$360 million refinancing facility for Petroceltic International, where the funds are supporting development at Ain Tsila Gas Field in Algeria along with upstream assets in Egypt and Bulgaria.
The Dealogic Statshot also reveals that African project finance volume stands at US$12.2bn via 28 projects in 2013 YTD, the highest YTD volume since 2009 ($13.6bn via 40 projects) and up from $4.7bn in 2012 YTD. Africa accounts for 6.1% of global project finance volume so far this year, the highest YTD share since 1995 (6.4%).
Finance partner Martin Kavanagh comments:
"With its growing middle class and increasing urbanisation foreign investment into Africa continues to rise as the world begins to wake up to the continent's huge potential. In particular we are seeing a lot of activity in Kenya, which leads Africa in the development of geothermal power production and is attracting a lot of interest from the larger US and European utility companies who perceive it as a market where they can get things done.
"There is also a good feeling about Nigeria, where domestic banks have reached the stage where they can compete against international banks to fund billion dollar-plus projects and the recent privatisation of its electricity industry is expected to open the market for independent power projects."
