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STRUCTURED FINANCE

The purpose of this product is to provide financial assistance to individuals to obtain shares in existing, successful, medium sized private companies based in KwaZulu-Natal or to enable individuals to pursue management buy outs of companies. It is also aimed at transactions that fall out of the scope of normal financing products where finance needs to be tailored via a combination of a debt and equity instrument. Loan amounts are determined in line with project expenses and repayments are concluded through cash-flow emanating from the identified project

Products offered under this fund include:

  • Leverage Finance
    • This loan serves the purpose of financing the acquisition of an equity stake in private companies, management buy outs, BEE transactions and refinancing of existing debt. The maximum term for this product is 120 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Project Finance
    • This loan serves the purpose of financing business for specific business projects. The maximum term for this product is 120 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Acquisition Finance
    • The loan serves the purpose of financing complete business purchases where 100% of the company. The maximum term for this product is 120 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Working Capital Finance - Term Loan
    • This loan serves the purpose of financing orders or contracts obtained by a company. The maximum term for this product is 36 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Working Capital Finance - Revolving Loan
    • This loan serves the purpose of financing contracts that require funds to be drawn at various stages of the project life cycle with a fixed cap on the facility. This option provides the client with the advantage of not having to reapply for a new facility each time funds are needed.
  • Risk Finance
    • This loan serves the purpose of financing equity transactions where there is no security provided for the funding required but the viability of the business can be demonstrated. The maximum term for this product is 120 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Guarantees
    • A guarantee will be issued in respect of companies securing contracts that require performance guarantees. The maximum term for this product is 12 Months but it can be adjusted to suit the cash flows of the business been financed. A monthly or annual management fee is normally charged.

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Ithala is an Authorised Financial Services and Credit Provider
FSP License No. 17139 NCRCP No. 1559 Reg No. 2001/007427/30
Ithala SOC Limited is a wholly-owned subsidiary of Ithala Development Finance Corporation Limited