FMO, The Netherlands Development Finance Company, announced that it had closed a six-year USD 36 million multi-currency syndicated loan facility with SA Taxi, a 98% owned subsidiary of Transaction Capital. The loan was arranged by FMO, in syndication with three other parties, including Cordiant (USD 15 million), Oikocredit (USD 5 million) and Symbiotics (USD 6 million).
The funds will be used for on-lending to small-to-medium enterprises (SMEs) for the acquisition of minibus taxis and income generating light commercial vehicles.
FMO’s Chief Investment Officer, Linda Broekhuizen, said: “By supporting SA Taxi, we will contribute to providing affordable and safe transport to around 19 million commuters per day. SA Taxi has already facilitated the creation of 35,000 SMEs, providing transport to customers which are generally excluded from traditional credit providers. The lenders are therefore very pleased to finance this high impact company.”
SA Taxi CEO commented: “This latest round of fund raising with FMO, our long term partner in the DFI community, is very important for SA Taxi and its customers. The combination of repeat funding from existing investors as well as first time investors is most gratifying as it reflects ongoing confidence in our business as well as recognition of the important positive social and economic impact the business has on the South African taxi owner and commuter base.”
ABOUT SA TAXI SA Taxi is a leading specialised lender to SME minibus taxi operators in South Africa. SA Taxi provides loans through finance leases together with insurance and other related products, utilising its credit assessment, collections and capital management competencies, together with operational competencies including vehicle and spare parts procurement, direct vehicle sales, vehicle refurbishment, short-term comprehensive insurance and telematics.
ABOUT FMO FMO (the Netherlands Development Finance Company) is the Dutch development bank. For 45 years, FMO has been investing in the private sector in developing countries. We believe in a world in 2050 where nine billion people can live well and within the boundaries of the planet. In pursuit of this vision, our mission is to empower entrepreneurs to build a better world. We specialize in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion, FMO is one of the largest bilateral private sector development banks. www.fmo.nl
ABOUT CORDIANT Founded in 1999 and based in Montreal, Canada, Cordiant pioneered the creation of emerging market corporate loan funds that invest in partnership with International Financial Institutions. Cordiant’s clients include some of the world’s largest institutional investors. With US $2.4 billion in total subscriptions, the firm manages four emerging market loan funds; the IFC Debt Pool; and one private equity fund, the Canada Investment Fund for Africa. The firm has made investments in approximately 200 companies in more than 50 emerging countries. It has exposure to all major sectors, including a large number of infrastructure investments. Cordiant is a signatory to the UN Principles for Responsible Investment. Cordiant is a regulated entity within Canada, the United States and Luxembourg. Further information about Cordiant is available at www.cordiantcap.com.
ABOUT SYMBIOTICS Symbiotics is an investment company specialized in emerging, sustainable and inclusive finance which offers market research, investment advisory and asset management services. It is a regulated asset manager of collective investment schemes by FINMA, the Swiss Financial Market Supervisory Authority and has an advisory license from the FCA, the Financial Conduct Authority in the UK. The company is headquartered in Geneva, with offices in Cape Town, London, Zurich, Mexico City, Singapore with a staff of over eighty professionals. Since 2004, Symbiotics has invested over USD 2.2 billion in more than 225 microfinance institutions in 50 emerging countries, working with more than 28 investment funds and many institutional investors.
ABOUT OIKOCREDIT Oikocredit is one of the world’s largest sources of private funding for the microfinance sector, providing credit and equity to low-income earners and small businesses through microfinance institutions across the developing world and directly to trade cooperatives, fair trade organizations and small to medium enterprises (SMEs). Oikocredit is privately financed through the investments of individuals and organizations. Oikocredit offers a positive triple bottom line to investors: social, environment and financial. Oikocredit has a development financing portfolio totalling € 735 million, invested across 63 countries worldwide. www.oikocredit.coop
ABOUT TRANSACTION CAPITAL Founded in 2007 Transaction Capital is a non-deposit taking financial services group operating in the asset-backed lending and specialist risk services segments of the South African financial services sector. The company was listed on the Johannesburg Stock Exchange in June 2012.
