| Tue 23 Feb 2010, 10:32 | | FGL - Finbond - World Business Capital Inc provides Finbond with 10 year US $ |
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FGL
FGL
FGL - Finbond - World Business Capital Inc provides Finbond with 10 year US $
10 million (R 75 million) funding facility
Finbond Group Limited
(Previously Finbond Property Finance Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 2001/015761/06)
Share code: FGL ISIN: ZAE000138095
("Finbond" or "the Company")
World Business Capital Inc provides Finbond with 10 year US $ 10 million (R
75 million) funding facility
Finbond is pleased to announce that it has signed a 10-year Credit Agreement
totalling an equivalent of US $10 million with WorldBusiness Capital, Inc.
(WBC), of Hartford, Connecticut in the United States. The loan from WBC is
supported by the Overseas Private Investment Corporation (OPIC), an agency of
the U.S. government.
The facility is a 10-year senior secured loan of the Rand equivalent of US $
10 million (R75 million rand). The facility will enable Finbond to grow its
short term microfinance book and expand its current network of 165 branches
in South Africa, Namibia and Botswana.
"We welcome the opportunity to support the growth of one of the leading
microfinance lenders in South Africa. Finbond`s capacity for providing
financial services to an underbanked segment of South Africa`s economy was a
key factor in our decision to extend long-term financing with the support of
OPIC`s small business programs," said Mr. Brett Silvers, President & CEO of
WBC.
Nova Capital Partners- an emerging market focused Investment Bank based in
New York, USA- acted as lead financial advisor to Finbond in sourcing,
structuring and executing the transaction. Mr. Paul Dixon, Managing Director
at Nova Capital Partners, said, "The granting of this US$10 million facility
by WBC with the support of OPIC is a compliment to and significant
endorsement of Finbond and its management, particularly in the current
economic and difficult fund raising environment. This facility was obtained
following a detailed due diligence and it has been an honour for our firm to
facilitate and advise Finbond on this important transaction. We look forward
to continuing our efforts on behalf of the company and helping them to
achieve their goals."
Dr. Willie van Aardt, Chief Executive Officer of Finbond, said: "We are
privileged in these times to partner with WBC and OPIC in the growth,
development and expansion of our business..WBC and OPIC are credible and
solid funding partners and we look forward to a mutually beneficial and
rewarding business relationship."
WBC has successfully closed loans to small and midsize businesses in emerging
markets throughout the world. In 2003 OPIC entered into a cooperative
arrangement with WBC to expand support for U.S. small business participation
in overseas projects.
OPIC was established as an agency of the U.S. government in 1971. It helps
U.S. businesses invest overseas, fosters economic development in new and
emerging markets, complements the private sector in managing risks associated
with foreign direct investment, and supports U.S. foreign policy. Because
OPIC charges market-based fees for its products, it operates on a self-
sustaining basis at no net cost to taxpayers.
OPIC`s political risk insurance and financing help U.S. businesses of all
sizes invest in more than 150 emerging markets and developing nations
worldwide. Over the agency`s 38-year history, OPIC has supported $188 billion
worth of investments that have helped developing countries to generate over
830,000 host-country jobs. OPIC projects have also generated $72 billion in
U.S. exports and supported more than 273,000 American jobs.
Pretoria
23 February 2010
Designated Advisor:
Grindrod Bank Limited
Date: 23/02/2010 10:32:02 Produced by the JSE SENS Department.
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