Harneys is advising SAFCO Venture Holdings on its US$140 million deal to boost sustainable aviation fuel production in Pakistan
The Harneys team is led by Partner Joshua Mangeot with support from Senior Associate Priya Mattu and Associate Tamika Calme.[1] Harneys is working alongside White & Case LLP. The firm’s strategic alliance partner, Harneys Fiduciary, provides corporate and fiduciary services to SAFCO.
The financing includes US$41.2 million from the Asian Development Bank (ADB)’s ordinary capital resources and US$45 million in syndicated loans including B-loans from The Emerging Africa & Asia Infrastructure Fund—an emerging market infrastructure debt fund owned by PIDG and managed by NinetyOne, and ILX—an Amsterdam-based emerging market asset manager focused on SDG and private debt climate strategies. ADB serves as the lender of record for the B-loans and as the mandated lead arranger and bookrunner for the financing package. The International Finance Corporation is providing a syndicated parallel loan and equity financing of up to US$35 million, including up to US$10 million from the UK Foreign Commonwealth & Development Office’s climate-related blended finance programme.
The facility, the first-of-its-kind in South Asia, will be managed by an operating subsidiary of SAFCO. Biotech Energy, another subsidiary of Safco Venture Holdings, currently manages Pakistan’s first-large scale biodiesel refinery as well as one of its largest oil feedstock collection networks. The facility will produce SAF and Bionaphtha, a raw material to produce sustainable plastic products, converting thousands of tons of used cooking oil and other waste oils into aviation fuel to reduce global emissions. Axens is technology provider and Rothschild & Co. are financial adviser to SAFCO.
Josh commented: “We are delighted to be supporting SAFCO and White & Case with this transaction. This project, which is the first of its kind in Pakistan and South Asia, marks a significant advance towards sustainable aviation and achieving reductions in greenhouse gas emissions and creating jobs and technological investment in Pakistan. Our Corporate and Banking & Finance teams worked seamlessly alongside our strategic alliance partner Harneys Fiduciary and it is a fantastic deal with which to mark the end of 2024.”
The Banking & Finance practice group at Harneys has decades of experience in offshore credit and security legal issues relating to debt finance, including loan finance, project finance, debt issuance, lease financing, shariah compliant finance, distressed debt and enforcement of security and derivatives. The team’s deep understanding about the business environment in which its clients operate help build strong networks with industry players and service providers in key markets around the world. The Corporate team at Harneys advises on complex cross-border transactions involving British Virgin Islands, Cayman Islands, Luxembourg, and Cyprus corporate vehicles. The team’s significant track record includes advising on high-profile private equity transactions, landmark IPOs, as well as public and private M&A and joint ventures. The firm’s expertise lies in advising entities listed or listing on all major stock exchanges, including the New York Stock Exchange, NASDAQ, the London Stock Exchange, AIM, the Hong Kong Stock Exchange, the Shanghai Stock Exchange, and the Luxembourg Stock Exchange.
[1] The appointment of Priya Mattu to senior associate is effective 1 January 2025, pending regulatory approval.
