South Africa: Norfund Acquires 8.9% of Real People

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Jan 2010
South Africa, January, 28 2010 - The Norwegian Investment Fund for Developing Countries (Norfund) has acquired an 8.9% equity stake in developing market credit specialist Real People for an amount of ZAR100 million. (USD 13 ml). The shares were acquired by way of a subscription for new shares.

In addition to the equity, Norfund also made available a ZAR100 million senior unsecured loan facility to Real People.

Both the equity and debt funding provided by Norfund will be utilised by Real People to expand the Group's current business which includes the provision of microfinance, affordable housing solutions and education products to individuals and small businesses in South Africa, Malawi, Tanzania, Kenya and Lesotho.

  • Providing access to financial services is central to Norfund's strategy for Financial Institutions, says Elizabeth Marinelli, Investment Director, Financial Institutions and Funds, Norfund.
  • We are very excited about the conclusion of the Norfund transaction as it introduces another stakeholder into the Group that shares our passion for the mass-market financial services opportunities that exist in Africa and which is committed to the cultivation of long-term sustainable financial solutions for small enterprises and lower income earning individuals on the continent, states Neil Grobbelaar, Joint Managing Director of Real People,:

According to Grobbelaar Real People has also raised further capital from existing shareholders and the Group is entering the 2010 calendar year very well capitalised and able to benefit from the generally improving conditions in the markets in which the Group operates.



Source : Realestate Web
 

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