S TA N L I B I N F R A S T R U C T U R E I N V E S T M E N T S

August 2021
AGENDA

INTRODUCTION AND OVERVIEW

STANLIB INFRAST RUCT URE T EAM

STANLIB INFRAST RUCT URE FUNDS

CURRENT INVESTMENTS

W HY STANLIB INFRAST RUCT URE

CONCLUSION

APPENDIX
INTRODUCTION AND OVERVIEW
 INTRODUCTION AND OVERVIEW

• STANLIB Infrastructure Fund II (Fund II) was established in 2016 with seed assets of
approximately R1bn to provide institutional investors with a platform to invest in a diversified
range of South African infrastructure projects

• At the beginning of 2020 STANLIB actively began a capital raise process to raise an additional R6bn
through the STANLIB Infrastructure Fund of Funds (FoF). The Team’s intention was to create a
significant competitive advantage through scale and diversification
STANLIB
Infrastructure • The FoF was launched in July 2020 and to date has successfully raised R6.7bn of new
commitments
Fund of Funds

• R5.9bn of these commitments have been drawn for investments with the remaining R800m pending
deal execution

• Given the strength of the pipeline and the opportunities the team sees in the market we have decided
to extend the capital raise beyond our original R6bn target

• Our new target fund size is R10-12bn

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 INTRODUCTION AND OVERVIEW (continued)

• Given budgetary constraints faced by the South African government, STANLIB Infrastructure
firmly believes that private sector capital will play an increasing role in funding the upgrading
and maintaining South Africa’s infrastructure base as well as have a significantly positive
impact on surrounding local communities

• Building on the above, STANLIB Infrastructure actively engages around environmentally

STANLIB sustainable business practices, corporate governance and has a specific focus on social
Infrastructure impact initiatives in local communities
Fund II

• This presentation provides an overview of STANLIB’s Infrastructure capability

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INVESTING IN INFRASTRUCTURE
INFRASTRUCTURE AS AN ASSET CLASS

AIRPORTS TELECOMMUNICATIONS
• Air & ground services • Voice (mobile & fixed line)
• Commercial & parking • Data networks (FTTH, cables, towers)

ROADS SOCIAL INFRASTRUCTURE

• Toll roads • Healthcare
• Toll bridges • Education and Government facilities

RAIL WATER
• Concession operators • Waste water treatment
• Rolling stock • Desalination

PORTS POWER
• Port operations • Generation IPPs
• Container terminals • Distribution

RENEWABLES LOGISTICS, OIL AND GAS

• Wind • Pipelines
• Solar • Terminals & storage facilities

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S TA N L I B I N F R A S T R U C T U R E
S TA N L I B A S S E T M A N A G E M E N T
B A C K E D B Y A F O R MI D A B L E PA R E N T S T R U C T U R E

Standard
Bank

53.65%

Industrial and Commercial

UGANDA
Bank of China
20.1% stake in Standard Bank
Group since 2008 100% GHANA
KENYA
NIGERIA
DRC
ZAMBIA
Other ANGOLA
MALAWI
Shareholders

37.34% NAMIBIA
MAURITIUS

BOTSWANA ZIMBABWE

LESOTHO
SOUTH AFRICA
BEE ESWATINI
Partners

9.01%
Standard Bank and/or Liberty STANLIB 9
AUTONOMOUS INVESTMENT TEAM
W H AT T H I S M E A N S F O R O U R C L I E N T S

1 Independent philosophy

INVESTMENT 2 Independent process

TEAM
ALIGNED TO
Investment team determines risk
CLIENT 3 tolerance
OUTCOMES
Investment team accountable for
4 outcomes

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S TA N L I B I N F R A S T R U C T U R E T E A M

KEY INVESTMENT WORKING AS A TEAM FOR

PROFESSIONALS 11 YEARS

Greg Babaya Andy Louw

BCom, Bcompt (Hons), MBA BCom, DipAcc, CA(SA),
Experience – 23 years CFA Experience – 18 years

ANALYSTS

Marisa Bester Kim Brown Muhammed Munshi Kimone Maharaj

B.Acc, B.Com (Hons) BCom, CA(SA), CFA BAccSci(Hons) (with BBusSci(Hons)
Experience – 16 years Experience – 7 years distinction), CA(SA), CFA Experience – 3 years
years Experience – 5 years

OPERATIONS

Welile Masondo
BCom, CA(SA) 11
Experience – 5 years
KEY INVESTMENT PROFESSIONALS

GREG BABAYA
MANAGING PRINCIPAL
BCom, Bcompt (Honours), MBA
Industry experience – 23 years
Greg joined STANLIB in 2012 bringing more than 18 years of experience in energy financing, project finance and infrastructure investing in Africa, North America
and Latin America. He also has a proven track record in private equity investing and, in the establishment, and capital raising of Infrastructure Funds.
Prior to joining STANLIB as head of Infrastructure Investments Greg spent 12 years at Standard Bank, 9 years in the Project Finance business as head of Power
and Infrastructure and the last 3 years as head of Infrastructure Equity managing a captive private equity portfolio. Before joining Standard Bank he spent 5 years
with ABN Amro’s Integrated Energy and Project Finance group based in Chicago.
Greg has 13 years experience on various funds governing boards and investment committees including the South African Infrastructure Fund (SAIF), African
Infrastructure Investment Fund (AIIF), STANLIB Infrastructure Private Equity Fund 1 and STANLIB Infrastructure Fund II. He sits on numerous boards of fund
investee companies.
Greg holds a Bachelor of Commerce from University of Cape of Town, a Bachelor of Commerce Honours degree from the University of South Africa, and an MBA
from the Kellogg Graduate School of Business at Northwestern University (USA).

ANDY LOUW
PRINCIPAL
BCom, DipAcc, CA(SA), CFA
Industry experience – 17 years
Andy joined STANLIB in 2013 after having spent the past 13 years in mergers and acquisitions, project finance advisory and infrastructure investing in Africa. Andy
has extensive deal making experience and a proven track record in infrastructure investing.
He started his career at Standard Bank, where he was a mergers and acquisitions advisor on a number of transactions involving South Africa’s top 40 listed
companies. He subsequently joined Macquarie, where he headed up Macquarie's Africa Infrastructure Advisory practice. After Macquarie, Andy re-joined Standard
Bank and spent 3 years at Standard Bank as a Director of Infrastructure Investments. The team moved within the group to STANLIB, where they now manage
assets on behalf of their clients.
Andy holds a Bachelor of Commerce and Diploma in Accountancy from University of Kwa-Zulu Natal. He previously qualified as a Chartered Accountant and
Chartered Financial Analyst.
INVESTMENT COMMITTEE

The STANLIB Infrastructure Fund Investment Committees have been established with the mandate to approve all Fund investments and divestments.
The committees consists of the following members:

FUND II COMMITTEE

Z O D W A M B E L E T L H A B E L I R A L E B I T S O M A R K L O V E T T F R E D T E E L I N G - S M I T H J O H A N M A R N E W I C K
Independent investment professional Independent investment professional STANLIB Head of investments STANLIB Equity analyst STANLIB Head of credit alternatives

FUND OF FUNDS COMMITTEE

H E N R Y M U N Z A R A C H R I S L I S T E R - J A M E S P E T E R V A N D E R R O S S A R N O L D G A I N
STANLIB Deputy Head of Investments Independent Investment Professional STANLIB Portfolio Manager: Absolute Returns Independent Investment Professional
INVESTMENT PROCESS

Financial structuring,
Investment analysis,
corporate governance
due diligence and
and commercial
development
negotiation

Investment
recommendation and
approval

New investment
opportunities
Deal documentation
preparation and
execution, conditions
precedent
Investment management
Life Cycle
Exit strategy
execution Performance
monitoring and input
to commercial
management and
corporate governance

Continual Ongoing financial

assessment of upside management and
potential optimisation
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S TA N L I B I N F R A S T R U C T U R E :
I N T E R G R AT I N G E S G FA C T O R S I N T O T H E I N V E S T ME N T P R O C E S S

Responsible exits,
e.g. job security for
DUE DILIGENCE INVESTMENT DECISION INVEST MENT AGREEMENT OWNERSHIP employees

EXIT

SCREENING ENGAGEMENT
• ESG objectives shared
• Due diligence • ESG considerations • Collaborate with portfolio company
with the portfolio
questionnaire to screen for included in investment to set up an ESG programme
company
high-level ESG risks committee discussions
• Formal commitment • Leverage portfolio company board
• Exclusions and restricted • ESG findings from due to implement ESG initiatives
sought from portfolio
lists for high-level checks diligence included in
company by • Leverage ESG expertise and
investment paper
incorporating ESG issues experience across the portfolio
• ESG considerations built in project agreements • Conduct periodic site visits
DETAILED DUE into valuations and
DILIGENCE financial models

• Detailed due diligence MONITORING

questionnaire to identify
and address ESG risks • Ensure ESG considerations are
on the portfolio company’s board
agenda
• Monitor ESG developments in
internal portfolio management
meetings

REPORTING TO LPs
• Annual ESG report

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WHY STANLIB INFRASTRUCTURE
 W H Y S TA N L I B I N F R A S T R U C T U R E

• Experienced team with deep complementary industry, technical and geographic investment experience
TRACK
and a proven track record across the capital structure
RECORD AND
TRUSTED TEAM • Longstanding industry relationships with key decision makers across all stages of the process which
provide unique sourcing, due diligence and post investment management
• Top quartile track record – SIPEF 1 has delivered 2.4 times money back and an IRR of greater than
25% after fees and carry

• Backed by STANLIB, Liberty and the Standard Bank Group

• Strong corporate governance culture

DIVERSIFICATION • Fund managers representing investors in the South African infrastructure asset class are primarily
THROUGH SCALE focused on new build investment opportunities due to management fees and carried interest
opportunities
• This has resulted in a significant number of investment platforms, few of which have managed to
achieve meaningful scale or diversification across infrastructure asset classes
• These platforms require asset exits within specific time frames, typically to a Rand investor
• STANLIB, through Fund II, intends to provide its investors with a platform in which to achieve
significant scale that allows for diversification across infrastructure assets and asset classes
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W H Y S TA N L I B I N F R A S T R U C T U R E

STANLIB has a proven track record of achieving enhanced risk adjusted returns:
• Unique deal sourcing via key investment professionals’ industry networks and ability
to leverage off Standard Bank Group capabilities

ATTRACTIVE
• Risk reduction through diversification
RETURNS • Fund leverage through scale
• Long term time horizon – results in value being recognized that is currently being
mispriced by the market
• Multiple legal and governance due diligence mechanisms to mitigate risks
• Significant experience and expertise around contract negotiation and capital
optimisation

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 S TA N L I B I N F R A S T R U C T U R E :
MA K I N G A S I G N I F I C A N T A N D S U S TA I N A B L E S O C I A L I MPA C T

STANLIB Infrastructure promotes socially responsible & environmentally sustainable business practices and implements the highest
standards of corporate governance & responsibility

• STANLIB is a member of CRISA and UNPRI

• Adheres to Equator Principles and
• Incorporates ESG into all investment decisions

Socio economic development Economic development spend

• R139m spent to date • R26m spent to date
• R492m to be spent • R101m to be spent

Community Trusts Tonnes of CO2 saved

• R547m fund flows to date • 789 000 per year
• R2,364m expected future flows • Equivalent of 116 772 cars

BEE wealth creation Jobs created - direct

• R522m net receipts to date • 675 jobs during construction
• R2,756m expected future net receipts • 55 jobs during operations

* All numbers as at June 2021 19

SA REIPPP INVESTMENTS:
MORE THAN JUST RENEWABLE ENERGY

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CONCLUSION
P R O P O S E D W AY F O R W A R D

• Core to our investment philosophy is that Infrastructure as an asset class in South

Africa not only offers investors diversified, risk appropriate, stable, long term
STANLIB returns but is a powerful means of making a tangible and sustainable difference to
INFRASTRUCTURE South African communities

• This presentation is intended to provide clients with an introduction & overview of

STANLIB Infrastructure’s fund offering

• To the extent, this offering is of interest, we would be very happy to engage further

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C O N TA C T U S

Rosanne Howarth Mzwandile Ngcobo

Client Fund Manager Client Fund Manager
011 448 5908 011 448 5914
Rosanne.Howarth@stanlib.com Mzwandile.Ngcobo@stanlib.com

Tracy Coetzer
Head: STANLIB Institutional Distribution
011 448 5091
082 330 8081
Tracy.Coetzer@stanlib.com

Keletsi Lehlokoe
Client Fund Manager
011 448 6967
083 226 0083
Keletsi.Lehlokoe@stanlib.com 23
THANK YOU
S TA N L I B
DISCLAIMER

The information and content (collectively “information”) provided herein is provided by STANLIB Asset Management Proprietary Limited (“STANLIB”) as general
information. Any information herein is not intended nor does it constitute financial, tax, legal, investment or other advice. Before making any decision or taking any
action regarding your finances, you should contact a qualified Financial Adviser. STANLIB does not guarantee the suitability or potential value of any information
contained herein.

As neither STANLIB nor its representatives did a full needs analysis, there may be limitations on the appropriateness of any information in this document with regard to
a particular investor’s unique objectives, financial situation and particular needs. STANLIB does not expressly or by implication propose that the products or services
offered in this document are appropriate to the particular investment objectives or needs of any existing or prospective client.

Performance data represented in this presentation is not GIPS compliant.

STANLIB is an authorized financial services provider.

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