FerroGlobe Resources Group — Capital Requirements & Funding Structure
The USD 750 million capital requirement, the three-tranche funding structure of equity and debt over 36 months, and the detailed use of proceeds.
Section 14 · Business Plan
Capital Requirements & Funding Structure
The USD 750 million capital requirement, the three-tranche funding structure of equity and debt over 36 months, and the detailed use of proceeds.
14.1 Total Capital Required
FGRG requires a total capital raise of USD 750 million over a
36-month deployment window. This figure encompasses all equity, senior
debt, mezzanine, and committed trade-finance facilities required to
execute the 7-year plan. Capital is raised across three sequenced
tranches, designed to align deployment with execution milestones and to
minimise dilution by raising later tranches at progressively higher
valuations following demonstrated operating performance.
14.2 Funding Structure
14.3 Tranche Structure
| Tranche | Timing | Amount (USDm) | Composition |
|---|---|---|---|
| Tranche 1 | Y1 Q1 | $250M | Equity $150M (founders + strategic LP) + Senior Debt $100M (DFI-led) |
| Tranche 2 | Y2 Q4 – Y4 Q2 | $350M | Senior Debt $200M (commercial banks + DFI) + Mezzanine $75M + Trade Finance $75M |
| Tranche 3 | Y4 Q2 – Y5 Q4 | $150M | Equity Top-up $75M + Trade Finance $75M (additional working-capital lines) |
| Total | Y1–Y5 | $750M | Equity $225M + Sr Debt $300M + Mezz $75M + TF $150M |
14.4 Target Funding Sources
- Equity: Founder team (USD 30M), strategic industrial LP partner
(USD 80M), African and emerging-markets-focused PE funds (USD
115M). - Senior Debt: African DFIs (DBSA, AfDB, IDC) for term debt;
international DFIs (IFC, FMO, Proparco, BII) for greenfield mill
financing; commercial banks (Standard Bank, ABSA, Nedbank, RMB) for
working-capital revolvers. - Mezzanine / Quasi-equity: Specialist mezzanine funds (Vantage,
Old Mutual Mezzanine), or DFI subordinated debt facilities. - Trade Finance: International trade banks (HSBC, Standard
Chartered, BNP Paribas) for letters of credit, supply-chain finance, and
pre-export finance.
14.5 Use of Proceeds — Detail
| Use | Amount (USDm) | Detail |
|---|---|---|
| Working capital | $180M | Trading book financing; supply-chain finance; receivables |
| Trading infrastructure | $35M | Office set-up, ERP/CTRM systems, hires, marketing |
| Service centres (×2) | $75M | Two facility acquisitions or builds — East and West Africa |
| Brownfield rolling mill | $140M | Acquisition of 0.4 Mtpa long-products rolling mill (Southern Africa) |
| Greenfield 1 Mtpa mill | $220M | Land, EPC, equipment, commissioning of EAF + LRF + caster + rolling line |
| Energy & solar | $60M | 200 MWp solar generation, BESS, wheeling agreements |
| Logistics fleet | $25M | Two chartered/owned vessels, port equipment, inland fleet |
| Reserves & contingency | $15M | 10% contingency on greenfield + general reserves |
| Total | $750M | Total capital deployment |
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of FerroGlobe Resources Group (Pty) Ltd.