RIVE&Co, the full service law firm, is proud to announce its role as Tanzanian law legal counsel, and English law opinion legal counsel, to TLG Capital on the successful closing of a strategic US$15 million facility to Kijenge Animal Products (KAP) the long-standing Arusha-based agro-processor.
This innovative financing package was structured in conjunction with CRDB Bank Plc (one of Tanzania’s largest commercial banks and DSE-listed entities), and is designed to refinance historic debt, free-up and inject vital working capital and encourage business growth for KAP in a novel structure created by TLG Capital that fuses principles of cutting-edge private-capital governance with term loan financing and debt related instruments. As part of the arrangements, KAP will be further supported with technical assistance from Manufacturing Africa (a UK FCDO-funded program). This multi-layered package will allow KAP to restart production lines, scale-up operations, and expand support for local farmers; creating growth along the supply chain and adding to food security regionally and Tanzania’s growing manufacturing and export markets.
TLG Capital is a leading private credit fund manager, based in London with a portfolio of funds vehicles across the world, specialising in Sub-Saharan Africa. Backed by IFC (World Bank), Swedfund, Norfund, and France’s public sector investment bank (Bpifrance), TLG Capital has completed over 50 deals with over 30 exits in 20 African countries over the past decade. The facility to KAP is TLG’s first such facility in Tanzania and is hoped to mark the start of a long relationship with Tanzanian businesses and the Tanzanian banking industry.
For RIVE&Co, advising on this complex transaction contributes to our commitment to facilitating catalytic investments in key Tanzanian sectors. This deal provides KAP with a clear path to expedited growth, after 40+ years of operation in the agricultural sector in and around Arusha.
“This deal showcases how thoughtfully structured debt injections can revitalise local enterprises, leading to increased entrepreneurialism and supporting Tanzania’s industrialisation agenda. We are honoured to have advised on this facility that supports Kijenge and has a positive economic knock-on effect in the region, whilst supporting a major Tanzanian bank to free-up capital for their wider SME portfolio across Tanzania and mitigating risk whilst steering TLG successfully through the regulatory landscape” — Asha-Sabrina Ayub, Consultant Partner, RIVE&Co
Our legal team, led by Asha-Sabrina Ayub, provided comprehensive Mainland Tanzanian legal advice on the structuring, terms and local regulatory aspects of the Finance Documents, ensuring a seamless and legally compliant transaction, and, as she is also qualified in England & Wales, Asha-Sabrina Ayub gave English law advice. Asha-Sabrina Ayub was supported by other members of the RIVE&CO team including Sunday Ndamugoba, Ntazimela Mwanakulya and Roman Mbowe.
Hannaford Turner also advised TLG on English law. D’Souza & Company Advocates acted as legal advisers to KAP. Commercial brokers included Africapital and DSM Consulting Group.
For more information, kindly contact Sunday Ndamugoba, our business development partner via sunday@rive.co.tz