Optimising a Malagasy conglomerate’s financing structure: the successful capital raise of Groupe Talys with IFC support
A diversified group with sophisticated financing needs
Groupe Talys is a leading family-owned conglomerate in Madagascar, managed by the Hassanaly brothers, who took over the succession of their father. Its profile is typical of Malagasy business groups: diversified across several sectors, with financing needs of different nature and scale. Through Sanifer, Talys has been a pioneer in the distribution of building materials since 1993 and has also developed a presence in food distribution with the Kibo supermarket chain. The group is active in hospitality, with three Radisson hotels in Antananarivo, and is expanding into leisure and real estate.
This diversification generates financing requirements that are both varied and relatively small in size — ranging from capex financing to working capital — and usually addressed project by project with local banks. As a result, Talys’ balance sheet had become complex, with multiple credit lines on diverse terms, frequent cross-guarantees between subsidiaries, and conditions not always adapted to the group’s growth trajectory. While the group was well served by local lenders, it needed to clarify, simplify and optimise its financing structure at group level, while diversifying its sources of capital beyond local banks through a more strategic corporate finance approach.
In this context, Talys mandated Enexus as the exclusive financial advisor to structure and raise debt financing at holding level with new international partners, aligning group-level optimisation with a coherent capital raising strategy. The transaction was particularly well-suited for a Development Finance Institution (DFI) and Enexus recommended approaching IFC, the World Bank Group’s private sector arm.
Meeting IFC’s requirements: a long and demanding process
Securing interest from IFC required a major preparatory effort. Enexus first worked with Talys to define and consolidate its financing needs, map existing bank facilities, and propose a restructuring plan. The team identified available securities, prepared a business plan reflecting both new projects and the proposed refinancing, and launched audits for subsidiaries that had not previously been audited. A comprehensive memorandum was drafted to position the opportunity in a favourable light for IFC, in line with international financial advisory practice.
Once IFC expressed interest, the most demanding part of the process began: navigating IFC’s lengthy and rigorous appraisal. This included financial, technical and sector due diligence, as well as a detailed ESG review, with Enexus assisting and coordinating each stream. The long timeframe created an additional challenge, as Talys’ investment projects evolved with market conditions, requiring updates to the financing plan and business model throughout the process.
Despite its complexity, the transaction advanced smoothly and successfully, culminating in the completion of the financing 18 months after Enexus’ initial mandate.
Strong value creation for Talys and the Malagasy economy
For Talys, the benefits extend well beyond a streamlined financing structure. The transaction has helped the group to raise its internal standards under IFC’s requirements, onboard a long-term financial partner capable of supporting future projects — including possible regional expansion — and attract additional financiers in the future. Talys also gains from IFC’s technical expertise, international visibility and global network.
The impact also reaches the Malagasy economy. As a major employer, taxpayer and provider of essential goods and services to the local market, Talys’ growth directly supports economic development in Madagascar. This transaction demonstrates how international capital, when channelled to ambitious local groups, can unlock both corporate growth and broader socio-economic impact.
