The opportunity

The cost of capital advantage.

Businesses across West, East, and Southeastern Africa routinely face local lending rates of SOFR + 800bps and above. In some markets, commercial facilities are currently priced at 25–30% per annum.

Frontier clients access international institutional capital at indicative all-in rates of SOFR/EURIBOR + 400bps, subject to project risk profile, tenor, currency, and availability of credit enhancement. That 400bps+ spread, compounded over the life of a facility, is the single biggest reason to engage Frontier.

Where a borrower provides full credit enhancement (confirmed SBLC or equivalent), fixed rates as low as 4.00% p.a. may be available from fixed-return institutional pools. All rates are confirmed at term sheet stage.

Deal parameters

What we arrange.

Minimum ticket
USD 10 million. No sector restrictions.
Instruments
Equity, mezzanine, and debt across the full capital structure. Instrument determined by project type and use of proceeds.
Sectors
Energy, infrastructure, agriculture, mining, manufacturing, real estate, and health. Open to all sectors.
Geographies
Africa and South Asia, with priority focus on West Africa (ECOWAS, WAEMU, CEMAC). Other markets case by case.
Tenure
Up to 7–8 years. Extensions for infrastructure.
Grace period
Up to 1–2 years.
Indicative rate
SOFR/EURIBOR + 400bps (hard currency). Tightens with credit enhancement. Local-currency tranches priced separately.
Sponsor contribution
EUR 1–2.5 million in equity participation (cash or SBLC) to ensure alignment and commitment.
The numbers

What this means for your business.

On a typical 6–8 year corporate facility, the difference between local lending at SOFR + 800bps (or 25–30% in naira terms) and a Frontier-structured facility at SOFR + 400bps translates to a material reduction in total debt service, even after all arrangement and advisory fees are included.

Where borrowers can provide full credit enhancement (confirmed SBLC or equivalent), fixed rates from institutional pools can compress this further. The savings compound over the life of the facility and scale with transaction size.

We prepare a detailed, transaction-specific cost comparison as part of every engagement, modelling your actual facility size, tenor, enhancement structure, and currency against the best available local alternative. This analysis is shared during the engagement phase so your board can evaluate the economics before any commitment.

Conservative case
SOFR + 400bps
vs. local rates of SOFR + 800bps and above
Best case (credit-enhanced)
From 4.00% fixed
where borrower provides full SBLC or equivalent
Indicative savings analysis (tailored to your facility size, tenor, and credit profile) available on request.
Process

How it works.

Frontier manages the full financing process from pre-qualification through to disbursement. The typical timeline from engagement to first tranche is 10–14 weeks, subject to documentation readiness.

01
Pre-qualification & expression of interest
Initial project screening, signed LOI or board resolution, and engagement confirmation.
1 week
02
Desk valuation & engagement
Financial review, business model assessment, and preliminary credit positioning.
1–2 weeks
03
Pre-DD & documentation
Documentation coordination, financial model review, advisory engagement, and credit enhancement structuring.
3–4 weeks
04
Site visit & audit
Physical inspection of operations, facilities, and assets. Independent verification where required.
1 week
05
Investor DD & term sheet
Credit committee presentation, investor due diligence, and delivery of approved term sheet.
2–3 weeks
06
Legal compliance & final audit
Legal opinions, compliance clearances, and execution of credit enhancement instruments.
1–2 weeks
07
First disbursement
Signing of definitive documents and disbursement of first tranche to the borrower.
40–50 days post-signing

Our fee is deliverable-based. No payment is due until a credit committee-approved term sheet is in the borrower's hands. Frontier does not charge upfront fees. Fee structure and economics are discussed during the engagement phase.

See our full process and control architecture
Getting started

What we need from you.

This is a readiness checklist, not a barrier to entry. Clients who do not yet have all documentation in place are welcome. We can coordinate its production with Big-4 advisory firms and specialist legal counsel.

To move forward, we require a signed LOI or board resolution from two senior officers or the majority shareholder, a project brief or business plan describing the use of proceeds, access to audited financial accounts for the last three fiscal years (Big-4 preferred), and designated counterparties at the executive and technical levels.

We also require a financial model (P&L, balance sheet, cash flow, IRR, ROE, DSCR), a feasibility study with risk and sensitivity analysis, KYC and AML verification for all beneficial owners, and an ESG statement where applicable.

Client equity contribution
EUR 1–2.5M
Cash or acceptable financial instrument (e.g. confirmed SBLC). Ensures alignment and commitment.
Transaction cost budget
EUR 100–250K
Covers DD, credit rating, legal opinions, and advisory work. Paid directly to named service providers.
These are client costs, not Frontier fees. All third-party costs are paid directly to the named service provider. Frontier does not intermediate or mark up these costs. Clients who do not yet have full documentation can work with Frontier to coordinate production.

Begin the conversation.

Send your project teaser, development brief, or business plan and we will revert within five business days.

funding@frontiercf.com

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