Company hires and sector developments

Agri-linked note prepped

The African Development Bank has approved a €100m partial credit guarantee (PCG) to African Agriculture Impact Investments (Mauritius) to develop commercial agriculture in Africa. The company will leverage the PCG to catalyse additional financing from international pension funds through an agri-linked note to facilitate investments in sustainable farmland and agricultural infrastructure across Africa. It will be authorised to operate in various African countries through an SPE that will include two other active portfolios worth €62.5m.

CRE insurance offering

LGIS Group has launched a commercial property loan insurance (CPLI) product aimed at the commercial real estate finance industry. Similar in concept to private mortgage insurance (PMI) in residential mortgage lending, CPLI is designed to be an institutional grade-rated loan guarantee that serves as an effective risk transfer and mitigation strategy for lenders. Removing the need for a personal guarantee also benefits the borrower, improving borrowing terms and increasing their capacity for more CRE deals.

Delay on CMBS resolution

Following the loan event of default on the Maroon Loan in Elizabeth Finance 2018-1,  the servicer, CBRE confirms that a special servicing transfer event has occurred with respect to the Maroon loan as the loan event of default has not been cured and the servicer has determined that the loan event of default is likely to have a material adverse effect in respect of the issuer. CBRE has met with the borrower and mezzanine lender to discuss the current situation. The borrower has also been in discussions with the mezzanine lender who is considering its options.

The servicer has subsequently served the mezzanine intention notice to the Mezzanine facility and security agent to confirm if the Mezzanine lender intends to exercise its intercreditor agreement rights including either its rights under clause 5 (default cure payments) or clause 6 (senior purchase option) and/or take any mezzanine enforcement action (as applicable).  The mezzanine lender has until 25 June to confirm its intentions.

Equity stake

White Mountains Insurance Group has acquired a minority equity stake in Elementum Advisors, an independent ILS manager with over US$4bn AUM, and will also invest US$50m across Elementum's funds. Elementum's principals continue to own a significant majority of the firm and will control the operation of the business following the transaction.

Fallback language finalised

The Alternative Reference Rates Committee (ARRC) has released recommended contractual fallback language for US dollar Libor-denominated securitisations, which proposes a hardwired approach regarding triggering events and the waterfall for rate determination. It also addresses the unique challenges presented by the securitisation market’s asset and liability components. The final language was prepared after consideration of all comments received - over 50 in total - on the fallback language consultations for bilateral business loans and securitisations (SCI 11 December 2018).

Italian law firm launches energy/infra unit

Gattai, Minoli, Agostinelli & Partners has launched an energy and infrastructure department. Ex-Lombardi Associati lawyers Carla Mambretti and Nicola Gaglione will head up the department with a team of six lawyers. Mambretti has experience in the renewable energy industry and in the infrastructure sector, advising on project finance in structured finance deals and investment transactions in energy production facilities from renewable sources (wind power, biomass and biogas, solar and hydropower) and on projects for the construction of energy production power plants in the context of public concessions and in the infrastructure industry.