Advanced Finance and Investment Group (AFIG) has invested $8million into Mauritania-based drilling services company, Drill Corp Sahara (DCS).
The funding has been channelled through Deep Drilling Company, a newly created holding company for DCS. The investment will enable DCS to expand its fleet of drilling equipment and to execute its mineral exploration projects across Africa. AFIG particularly plans to bolster the company’s services in the West Africa region, also through bolt-on acquisitions.
AFIG has invested in the company through the Atlantic Coast Regional Fund (ACRF), a Shariah-compliant vehicle. Half of ACRF’s compliant investments are in the form of a Murabaha tranche consistent with ACRF’s return profile. Murabaha is a type of Shariah investment structure where the seller reveals to the buyer the cost incurred on the assets being sold.
“We are pleased and proud to collaborate with DCS as it enters into the next phase of its growth strategy,” said Papa Madiaw Ndiaye, AFIG’s chief executive officer. “The ACRF investment underscores our commitment to support the growth of indigenous African businesses that have demonstrated the capacity to operate successfully.”
DCS was created in 2005 by Abderrahmane Ould Mohammed, who is currently the company’s chief executive officer. Headquartered in Nouakchott, the company provides a range of hydraulic and drilling services to mining companies.