MAURITIUS Law and Practice Contributed by: Gilles Athaw, Jason Barbe, Deeviya Rughooputh and Sushika Ramlugun, Bowmans
8.6 Common Financing Sources and Typical Structures The financing sources and structures can vary depend- ing on the nature of the project, its scale, and the risk profile. The typical financing sources and structures would include: • bank financing – with fixed or variable interest rates and repayment terms tailored to the project’s revenue generation; • export credit agency (ECA) financing – particularly common in large infrastructure projects; and • project bonds – generally issued by project compa- nies to investors seeking long-term, fixed-income instruments. Alternative sources of financing include: • private equity – private equity firms may invest directly in projects in exchange for equity owner- ship seeking higher returns being more actively involved in project management and decision- making; • public-private partnerships (PPPs) – private entities often finance or provide land for the development of a specific project. They may also design, build, operate and maintain the project over a defined period; • multilateral and development banks – international institutions like the World Bank, Asian Develop- ment Bank and African Development Bank provide funding and support for development projects in emerging markets, including Mauritius; and • crowdfunding and peer-to-peer lending – while not very common for project financing in Mauritius, smaller projects might use crowdfunding or peer- to-peer lending platforms to raise capital from a large number of individual investors. 8.7 Natural Resources Mauritius does not have extractive natural resources and exportation is not an issue. 8.8 Environmental, Health and Safety Laws The Environment Act 2024 stands as the main legal framework governing environment matters concerning various projects. The Environment Act has repealed the Environment Protection Act 2002, and replaced
the setting-up of a waste-water treatment plant and road infrastructure projects. 8.3 Governing Law Project documents are not required to be governed by local law, nor are disputes required to be resolved in local courts. The choice of a foreign law, as the governing law of the contract will be upheld in Mau- ritius. Likewise, the choice of a foreign jurisdiction or international arbitration for settlement of disputes will be recognised. 8.4 Foreign Ownership Foreign entities (or any Mauritian company with a non- citizen of Mauritius as shareholder or ultimate benefi- cial owner) must seek approval of the Prime Minister’s Office if they intend to acquire immovable property within Mauritius. Likewise, if a foreign lender intends to enforce any remedial rights on a security related to immovable property in Mauritius, leading to an eventual owner- ship of that property, obtaining the Prime Minister’s Office’s approval will be a prerequisite. 8.5 Structuring Deals The ownership structure is the primary concern for a project – the type of vehicle used and how it is organ- ised to “house” the investors and financiers. Tradition- ally, a private company limited by shares would be the favoured option, but other structures may be more appropriate, depending on the type of project. Where immovable property would be owned or leased over a period by the project vehicle, approval from the Prime Minister’s Office would be required if non-citi- zens would be holding a direct or indirect sharehold- ing or interest in the project company, except where certain exemptions are provided. The financial structure would also be of relevance in determining how the project would be financed, which could involve equity, short-term and long-term loans, bonds (listed or unlisted), quasi-equity and the deter- mination of the relevant revenue streams to service the debts. Each type of financing would require spe- cific attention in order to comply with the regulatory environment.
388 CHAMBERS.COM
Powered by FlippingBook