| Mon 6 Oct 2008, 13:05 | | FPF - Finbond Property Finance Limited - Netherlands Development Finance Company |
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FPF
FPF
FPF - Finbond Property Finance Limited - Netherlands Development Finance Company
(FMO) provide Finbond with Euro 7,5 million (R 85 million rand) funding
Finbond Property Finance Limited
(Previously Quantum Leap Investments 527 (Proprietary) Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 2001/015761/06)
Share code: FPF ISIN: ZAE000097259
("Finbond" or "the Company")
Netherlands Development Finance Company (FMO) provide Finbond with Euro
7,5 million (R 85 million rand) funding
Further to the cautionary announcement dated 15 September 2008, Finbond is
pleased to announce that it has signed two Rand facilities totalling an
equivalent of EUR7.5m with FMO N.V. (FMO), the Dutch development bank.
The first facility is a five year Senior unsecured loan of the Rand equivalent
of EUR2.5m with an interest only period of two years. The second facility
comprises the Rand equivalent of EUR5m in subordinated mezzanine funding
repayable in five years. These facilities will enable Finbond to grow its book
by two thirds and entail no currency risk for the company. Moreover, the
subordinated facility provides Finbond with a platform to raise further Senior
debt to realise its growth plans.
FMO is a solid partner with an investment portfolio of EUR3.4bn, making it one
of the largest bilateral development banks worldwide. FMO has an AAA rating
from Standard and Poor`s and has recently obtained a banking license from the
Dutch Central Bank. FMO was established jointly by the Dutch government and
Dutch private sector organisations in 1970 to catalyse development by financing
private sector parties in developing countries. The Dutch Goverment is a 51%
shareholder in FMO.
In conjunction with the facilities, FMO has provided Finbond with a grant to
accelerate Finbond`s process of centralisation and to fund consultancy services
to identify areas where Finbond can further strengthen its risk management and
credit monitoring capabilities. In addition, the facilities incentivise Finbond
to adhere to `best in class` lending practices in the South African market, with
a view to servicing its customers sustainably, limiting risk and facilitating
future fund raisings abroad.
Mr. Jorim Schraven, Investment Officer at FMO, said: "We are excited to
facilitate access to finance for disintermediated people in South Africa through
these funding lines for Finbond. We will work with Finbond to help strengthen
its capabilities to disburse its loans centrally, and do so in a way that is
sustainable for its customers."
Dr. Willie van Aardt, CEO of Finbond, said: "This partnership with FMO is a
milestone for Finbond which will help us grow our consumer finance book
significantly and provides a platform for further fund raising at home and
abroad. FMO is a credible and solid partner and we look forward to a mutually
beneficial and rewarding business relationship."
Shareholders are advised that caution is no longer required when dealing in
Finbond shares.
Pretoria
6 October 2008
Designated Advisor:
Exchange Sponsors (Pty) Ltd
Date: 06/10/2008 13:05:28 Produced by the JSE SENS Department.
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