Helios Study: Environmental and Social Due Diligence

WhoHelios Investment Partners client case study by Kina Advisory

Helios Investment Partners (Helios) is the largest Africa-focused private investment firm, investing in invest in start-ups, growth equity investments, listed companies and large scale leveraged acquisitions across the continent. Their sectors of focus include telecommunications, media, financial services, power, utilities, travel, leisure, distribution, fast-moving consumer goods, logistics and Agro–allied sectors. Helios is also the largest emerging markets-focused Private Equity firm globally to receive B Corp certification.

What

Helios invested $100 million for a 12.4% stake in Africa Oil Corp. (AOC), a Canadian oil and gas company with assets in Kenya and Ethiopia. As part of the investment decision-making process, Helios required an independent environmental and social (E&S) due diligence of AOC’s activities.

Kina was engaged to carry out an independent E&S review based on AOC’s compliance with the international Finance Corporation’s (IFC) Environmental and Social Performance Standards, in time for a decision by Helios’ Investment Committee. The purpose of the E&S review was to determine whether AOC had effective procedures, systems and processes in place for identifying, assessing and managing E&S risks and impacts.

How

The E&S due diligence included a detailed review of documents relating to AOC’s policies, procedures, management plans and activities. It also accounted for the E&S impacts of the company’s operations in Kenya and Ethiopia based on Kina’s detailed knowledge and experience of AOC’s assets in these areas. Kina had a number of discussions with AOC and reviewed a report of an E&S assessment carried out separately by IFC.

The findings, conclusions and recommendations were presented to Helios in an executive summary and a comprehensive supporting report.

Results

The outcome of the E&S review was an important factor in providing Helios with the necessary assurances to make a significant investment decision regarding AOC.

“The Kina team carried out a thorough environmental and social due diligence review of AOC, demonstrating a deep knowledge of the issues relevant to the oil and gas industry in Kenya and Ethiopia. We were impressed by the quality of their work.”

Ogbemi Ofuya, Vice President, Helios.

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