Helios Investment Partners (Helios Investments), a UK-based private investment firm led by Nigerian multimillionaire businessman Temitope Lawani, has secured a capital call facility that will be used to target sustainable investments across Africa.
The facility, which is the first of its kind in Africa, demonstrates Helios’ commitment to building profitable, value-creating and socially responsible businesses in Africa, according to a press release issued by the leading Africa-focused private equity firm.
Leading financial services firms, Rand Merchant Bank and Standard Chartered Bank, arranged and coordinated the ESG-linked capital call facility as part of Helios Investments’ fourth funding round.
The interest rate on the Helios IV capital call facility is tied to ESG performance targets set by the lenders, while the fund’s portfolio’s individual ESG ratings will be determined by an independent rating agency.
Helios stated that it will continue its long-standing practice of working closely with its portfolio companies to continuously improve their ESG performance and capabilities, both from a risk management and a value creation standpoint.
Helios Chief Financial Officer Paul Cunningham explained that the imperative to meet high ESG standards is integrated into everything Helios does, and as a result the investment will allow Helios to target and track continuous improvement in ESG ratings for its portfolio companies.
He added that companies with strong ESG standards and performance will generate superior financial returns, and, as a result, the facility’s opportunities will drive growth impact.
Lina Osman, head of sustainable finance for Africa and Middle East at Standard Chartered Bank, said: “Africa faces significant challenges from climate change and huge opportunities to leapfrog to low carbon and sustainable business models. We are proud to have partnered with Helios to embed ESG performance targets into its capital call facility.”
