23 NOV 2022

MCB Capital Markets and Societe Generale co-lead €135M debt financing for JA Delmas acquisition


MCB Capital Markets (“MCBCM”), a subsidiary of MCB Group, and Societe Generale Côte d’Ivoire (“SGCI”) through its Structured Finance Group for Sub-Saharan Africa (“SFG AFS”) are pleased to announce that they acted as Co-Lead Arrangers in raising approximately EUR 135 million to finance the acquisition of JA Delmas (“JAD”), the exclusive dealer for Caterpillar in francophone West Africa. The Delmas family has held the representation for this iconic brand, the world’s leading manufacturer of yellow metal machinery, for nearly a century.

This successful debt raise attests to the depth of MCB Group’s capabilities, including acting as Co-Lead Arranger, Security Agent, Facility Agent, Accounts Bank and largest Lender on the transaction. It also reflects the robustness of the Mauritian International Financial Centre as a platform to structure and fund significant deals in Africa. 
The transaction also bears testimony to the expertise of Societe Generale Group in West Africa and echoes its strengths in delivering strategic financing solutions for regional champions, with SGCI acting as Co-Lead Arranger and second largest Lender. 
The acquirer is a newly incorporated Mauritius domiciled investment vehicle, jointly owned by Jean-Luc Konan, founder of Groupe COFINA (financial institution in West & Central Africa ), and Mohamed Al Bahar (“MAB”), the Caterpillar dealership in five countries in the Arabian Gulf.
JAD operates in 11 countries with a turnover of approximately EUR 700 million and has over 2,000 employees. Following this transaction, the business will embark on an accelerated growth path led by its current Chief Executive and other senior managers, who will remain with the business. Through Groupe COFINA, Jean-Luc Konan, the new Dealer Principal, and Chairman will extend the group’s reach in francophone West Africa while MAB will play a key role as technical partner. 
Jean-Luc Konan, founder and Chief Executive of Groupe COFINA, commented: “We made the right choice in appointing MCBCM and SGCI as Co-Lead Arrangers. Their teams worked through and led this transaction to completion with tenacity, expertise, and professionalism.”
Rony Lam, Chief Executive of MCB Capital Markets, commented: “I wish to thank Jean-Luc for his trust in such an important transaction for both himself and his partners. JA Delmas has a rich history in West Africa and we are proud to have played a part at this junction. Our team, supported by MCB Group’s broad range of capabilities, has once again displayed its ability to execute cross-border transactions, which require solid technical skills and rigorous transaction management.”

Kane Mohamed El Fadel, Managing Director, Regional Head of Capital Markets & Structured Finance Sub-Saharan Africa, commented: “This acquisition financing is a perfect illustration of Societe Generale Group's strong footprint in Africa. In order to accompany our clients, we have built a strong team comprising of international and local experts with a combination of sector knowledge, technical expertise, structuring and execution capabilities to deliver optimal solutions.
Herbert Smith Freehills advised the consortium of lenders while Baubigeat Zeller, Asafo & Co and Allen & Overy provided legal advice to the borrower. Eponyme Partners, a Paris-based advisory firm, acted as M&A adviser to the buyer.

About MCB Group
MCB Group is an integrated banking and financial services group, offering a comprehensive range of tailored and innovative solutions to its retail, corporate and institutional clients. The Group is rated ‘investment grade’ by Moody’s and Fitch, and is currently ranked 1st in East Africa, 18th in Africa in terms of Tier 1 Capital (The Banker Top 1000 World Banks, July 2022) and 4th Strongest Bank by balance sheet in Africa (The Asian Banker 2022). MCB Group is present in 10 countries via its subsidiaries in Madagascar, Seychelles and Maldives, its representative offices in Johannesburg, Nairobi, Paris and advisory office in Dubai, and via its associates - Societe Generale Moçambique and Banque Française Commerciale Océan Indien (BFCOI) - in Mozambique, Réunion Island and Mayotte.

About MCB Capital Markets
MCB Capital Markets is the investment banking, asset management, and proprietary investment arm of MCB Group, the largest banking group in Mauritius. The company provides corporate finance advisory, asset management, private equity, securities and registry services. Based in Mauritius, the team works with clients wishing to start and/or grow their operations in Africa, and helps them develop solutions that meet their financing, strategic and investment objectives. Learn more about MCB Capital Markets at https://www.mcbcapitalmarkets.mu/en/ 
About Societe Generale Côte d’Ivoire 
Societe Generale Côte d'Ivoire is the Ivorian subsidiary of the international financial group Societe Generale. Present for 60 years in Côte d'Ivoire, it has established itself as the benchmark bank, leader in the Ivorian and sub-regional banking market.
The bank supports all economic actors: State, households, professionals and companies through teams of proactive experts. It offers a rich and complete range of personalized products and services, designed to support customers at each stage of their development, locally and internationally.
As part of its differentiation strategy, Societe Generale Côte d'Ivoire has set up a High premium bank dedicated to its wealthy clients and a space dedicated exclusively to supporting SMEs.
Societe Generale Côte d'Ivoire is present throughout the Ivorian territory with a vast network of branches, self-service spaces, off-site vending machines.
The bank also has a trading room, which integrates the foreign exchange activities of Societe Generale subsidiaries in the WAEMU zone, as well as a Structured Finance department with a regional vocation for major syndication or financing operations.
Societe Generale Côte d'Ivoire operates in the financial market through its subsidiaries: Societe Generale Capital Securities West Africa and Societe Generale Capital Asset Management West Africa, for management and Intermediation Company. Learn more about Societe Generale Côte D’Ivoire at https://institutionnel.societegenerale.ci/fr/votre-banque/nous-connaitre/ 

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