Ecsponent concludes a ZAR 700 million loan financing term sheet with Afreximbank, transaction expected to close before June financial year end
- Substantial move towards diversification of Ecsponent’s capital raising efforts; reducing reliance on retail funding
- Proceeds to bolster SME lending business
- Significant reduction in the Group’s weighted average cost of capital
- Four-year, rand denominated facility
It is with great pleasure that we announced the conclusion of a term sheet with the African Export-Import Bank (“Afreximbank”) today. The term sheet sets out terms for a ZAR700 million dual-tranche medium-term loan facility, which will support the Group’s lending activities to its growing SME portfolio, reduce funding costs and improve profitability.
The rand denominated transaction translates into ZAR700 million in foreign direct investment inflows into South Africa and marks Afreximbank’s first investment foray into the country. It is also in line with the Group’s ongoing efforts to diversify and grow funding sources and strengthen its ability to service our growing credit operations, focused towards SMEs in South Africa and neighbouring countries.