AeroSphere — Funding Requirement & Investor Returns
The ZAR 6.8 billion capital structure across senior debt, mezzanine, sponsor and DFI equity and grants, the projected returns, the sensitivity analysis and the exit and liquidity options.
Section 14 · Business Plan
Funding Requirement & Investor Returns
The ZAR 6.8 billion capital structure across senior debt, mezzanine, sponsor and DFI equity and grants, the projected returns, the sensitivity analysis and the exit and liquidity options.
AeroSphere is seeking ZAR 6.8 billion in phased capital. The
structure blends senior debt, mezzanine finance, sponsor and
strategic/DFI equity, and a modest component of grants and locational
incentives, optimising the weighted cost of capital while preserving
lender protection and equity upside.
13.1 Capital Structure
| Instrument | Amount (R bn) | Share | Indicative terms |
|---|---|---|---|
| Senior debt | 3.20 | 47% | Long tenor, secured, amortising |
| Mezzanine | 0.90 | 13% | Subordinated, higher coupon |
| Sponsor equity | 1.70 | 25% | Ordinary, long-term |
| DFI / strategic equity | 0.70 | 10% | Ordinary, board seat |
| Grants & incentives | 0.30 | 4% | Non-dilutive |
| Total | 6.80 | 100% | Blended, phased |
13.2 Projected Returns
On the base-case projections, the platform delivers a blended project
IRR of approximately 24% over a ten-year hold, with sponsor equity
earning a higher risk-adjusted return reflecting its junior position.
The returns are underpinned by growing operating cash flows and a
substantial terminal value driven by the long-dated, inflation-linked
property and infrastructure asset base.
| Investor class | IRR | MOIC | Risk position |
|---|---|---|---|
| Sponsor equity | ~27.5% | ~3.4x | Junior / highest upside |
| DFI / strategic equity | ~21.0% | ~2.6x | Ordinary equity |
| Mezzanine | ~16.5% | ~1.9x | Subordinated debt |
| Blended project | ~24.0% | ~3.0x | Whole-of-project |
13.3 Sensitivity Analysis
The base-case IRR is tested against the key value drivers. The
project is most sensitive to passenger volume and non-aeronautical
yield, and least sensitive to the debt margin and exit multiple.
Critically, even under the modelled downside cases the project remains
comfortably above the cost of capital, reflecting the de-risking benefit
of revenue diversification and phased deployment.
13.4 Exit & Liquidity Options
The Company envisages several credible liquidity pathways for equity
investors: a trade sale to an infrastructure or airport operator; a sale
to an infrastructure fund or pension allocator seeking long-dated,
inflation-linked yield; a partial recapitalisation once cash flows
mature; or, over a longer horizon, a public listing of the platform. The
hard-asset base and contracted cash flows support a strong terminal
valuation under each scenario.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of AeroSphere Gateway Holdings (Pty) Ltd.