Optimal funding mix
Blend senior debt, mezzanine and equity against Ethiopian pricing — bank debt near 19–21%, private equity return targets near 28% — with leverage and debt-service guardrails applied automatically.
Company & need
Recommended structure
Debt capacity remaining: ETB 405.0m (3.5× EBITDA cap)
Senior debt · 19.5% costETB 200.0m
Equity · 28.0% target returnETB 200.0m
Blended cost of capital
23.8%
Post-raise leverage
2.1×
Net debt / EBITDA
Debt service cover
1.42×
Above 1.3× lender threshold
Sourcing map
Senior debt
Commercial banks, DFI credit lines (DBE, AfDB, TDB), syndicated if > ETB 1bn
Mezzanine
DFI mezz funds, insurance balance sheets, convertible structures
Equity
Strategic investors, diaspora capital, private placements ahead of an ESX listing