Kalahari Crown Exports — Funding Strategy & Exit Opportunities
The funding strategy and exit opportunities — the target funding partners, the use of proceeds, the security and covenants and the exit opportunities available to investors.
Section 16 · Business Plan
Funding Strategy & Exit Opportunities
The funding strategy and exit opportunities — the target funding partners, the use of proceeds, the security and covenants and the exit opportunities available to investors.
13.1 Target Funding Partners
- Industrial Development Corporation (IDC) of South Africa
- Land Bank of South Africa
- Development Bank of Southern Africa (DBSA)
- African Development Bank (AfDB)
- Private equity and agricultural infrastructure funds
- Export-finance institutions and trade-finance providers
13.2 Use of Proceeds
Proceeds will be applied strictly in accordance with the capital
programme in Section 9.2 — land and development, irrigation, orchard and
vineyard establishment, packing and cold-storage infrastructure,
logistics fleet, technology systems and pre-operating working capital —
with drawdowns linked to milestone completion to protect lenders and
investors.
13.3 Security & Covenants
Senior debt will be secured against the Company’s land,
infrastructure and receivables, with customary financial covenants
including a minimum debt-service-coverage ratio (typically 1.3x) and
gearing limits. As shown in Section 9.7, the projected DSCR provides
comfortable headroom above this floor from Year 4.
13.4 Exit Opportunities
The plan is structured to create multiple liquidity pathways for
equity investors at maturity:
- JSE listing: a public offering once the
enterprise has a multi-year track record and a multi-billion-Rand
revenue run-rate. - Strategic acquisition: sale to a larger
integrated agribusiness or international fresh-produce group. - Private-equity transaction: secondary buyout by
an infrastructure or agriculture-focused fund. - Export-consortium formation: consolidation into
a regional export champion.
At an indicative 8.0x Year-7 EBITDA, net of remaining debt, the
enterprise supports an indicative equity value of approximately R12,256
million, underpinning the projected equity IRR of 39.3%.
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 Kalahari Crown Exports (Pty) Ltd.