Financial Proposition
A Disciplined Investment Case
We seek a USD 45 million initial financing package to form and prepare the Pan-African Aviation Consortium and launch its first five-year commercial business. The proposal separates seed preparation, Phase 1 operations and later ecosystem investments with defined uses, expected outcomes and staged approvals.
Funding Overview
USD 45 Million Initial Request
The immediate funding decision is the seed and Phase 1 programme. Major facilities are approved only after their own demand, engineering, equity, return and financing tests.
Grant / Risk Capital
USD 30M
Grant or equivalent external risk capital
Covers preparation expense and opening operating cash. Donor restrictions and accounting require confirmation.
Repayable Loan
USD 15M
Repayable concessional loan
Standalone loan tested at 6% with principal repaid in Y3–Y7. Minimum repayment DSCR of 3.87 in base case.
Use of Funds
USD 10M preparation expense
Formation and preparation costs
USD 35M opening operating cash
Launch liquidity and early operations
Year 0 assumes no trading revenue. The modelled unrestricted grant treatment leaves USD 20M residual book equity after preparation expense.
Four-Phase Financial Summary
Each phase has distinct funding, expected outcomes and decision gates. The seed package is not added a second time to Phase 1 capital requirements.
| Phase | Period | Revenue | Net Profit | Closing Cash |
|---|---|---|---|---|
Formation Governance and founding agreements before major spending. Lawful consortium and accountable leadership. | D0–D90 | — | — | — |
Seed USD 45M sources fund USD 10M preparation expense and USD 35M opening operating cash. Validated initial business. | Year 0 | — | — | USD 35M |
Phase 1 Partner-based commercial platform. USD 40M phased growth assets within the cash flow programme. | Years 1–5 | USD 240M | USD 45.19M | USD 77.78M |
Ecosystem USD 2.58775B additional shared growth assets. Subject to individual asset approvals. | Years 6–15 | USD 2.045B | USD 118.43M | — |
Standalone Partner Business
Phase 1 Can Be Appraised Separately
A standalone USD 15M loan tested at 6% with principal repaid in Y3–Y7 has minimum repayment DSCR of 3.87 in the base case. That option leaves Y5 cash of USD 67.25M and debt of USD 6M, compared with USD 77.78M cash and USD 15M debt under the original longer concessional schedule.
31.64%
Preliminary 15-year liquidity inclusive project IRR (standalone partner business, continuation scenario — not an investor exit in Y5)
Full Ecosystem
Long-Term Returns
9.49%
Full ecosystem core IRR through Year 45
–USD 117.78M
NPV at illustrative 12% discount rate
We therefore seek staged seed and first business funding now, with major facilities approved only after their own demand, engineering, equity, return and financing tests. No institutional approval or financing commitment is represented as secured.
Lender Metrics
Debt Service Coverage
3.87x
Minimum repayment DSCR (standalone Phase 1 loan, base case)
Y3–Y7
Principal repayment window
6%
Test interest rate
All model outputs are management scenarios with their currency and scale stated, not contracted sales, lender commitments or AfDB approval. The revenue ramp and blended service margins require customer and supplier validation. Some downside cases fail liquidity. Authoritative source: PAAC Open Consortium Master Proposal, version 36, 9 October 2026, including Annexes A–F and 214 references.
Interested in Financing PAAC?
Review the full proposal or contact PAAG to discuss the investment case.