Lula lend (Pty) Ltd
Status: Investment in contracting phaseWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Lula Lend (Pty) Ltd (“Lula”), a new customer to FMO, is a fintech company at scale that commenced operations in 2015. The company is based in Cape Town and is active in South Africa as an uncollateralized lender to the underserved MSME market.
What is our funding objective?
FMO will fund a three-year ZAR-equivalent line of up to USD 20 million, supporting Lula’s continued growth in enhancing underserved MSMEs access to short-term funding and working capital.
Why do we want to fund this investment?
Through this loan FMO will provide Lula with long-term local currency funding to support underserved MSMEs in South Africa, providing access to finance for smaller and nascent businesses active across a wide range of sectors. Typically, these MSMEs do not qualify for traditional bank loans, and the majority qualifies as first-time borrower. The FMO loan will contribute to promoting systemic changes in the MSME lending market in South Africa.
What is the Environmental and Social categorization rationale?
Lula is classified as E&S category C in accordance with FMO’s Sustainability Policy. The E&S risk classification reflects the company’s exposure to short-term and relatively small-sized loans. Applicable requirements identified for this project are the IFC Exclusion List and the national environmental and social laws that apply in South Africa.
- Website customer/investment
- https://lula.co.za/
- Region
- Africa
- Country
- South Africa
- Sector
- Financial Institutions
- Publication date
- 7/31/2024
- Deadline for feedback
- 8/30/2024
- Total FMO financing
- USD 20.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C