Siyanda Agro-Processing — Funding Requirement & Capital Structure
The ZAR 1.25 billion funding requirement — the use of funds, the sources of funds across equity, senior debt and concessional finance, the indicative financing terms and cost of capital and the returns to investors.
Section 9 · Business Plan
Funding Requirement & Capital Structure
The ZAR 1.25 billion funding requirement — the use of funds, the sources of funds across equity, senior debt and concessional finance, the indicative financing terms and cost of capital and the returns to investors.
Siyanda is raising ZAR 1.25 billion in a blended capital
structure designed to balance cost of capital, risk-sharing and the
development-impact mandate that unlocks concessional finance. The
structure targets a conservative gearing profile that deleverages
rapidly as the business generates cash.
9.1 Use of Funds
Capital is deployed predominantly into productive, asset-backed
infrastructure, with a disciplined working-capital allowance and an
explicit contingency reserve. The asset-heavy deployment provides
security cover for senior lenders.
| Use of funds | ZAR ‘000 | % of total |
|---|---|---|
| Primary processing plant (Phase 1) — buildings & civils | 285,000 | 22.8% |
| Processing & packaging equipment lines | 240,000 | 19.2% |
| Cold-chain & refrigerated storage infrastructure | 165,000 | 13.2% |
| Contract-grower input financing & extension facility | 140,000 | 11.2% |
| Land acquisition & long-term leases | 95,000 | 7.6% |
| Logistics fleet & export consolidation hub | 90,000 | 7.2% |
| Working capital (inventory, debtors, seasonality) | 110,000 | 8.8% |
| Certifications, ESG, systems & pre-operating costs | 45,000 | 3.6% |
| Contingency reserve (~6.4%) | 80,000 | 6.4% |
| Total funding requirement | 1,250,000 | 100.0% |
Table 20. Use of funds — deployment of the ZAR
1.25 billion raise.
9.2 Sources of Funds
The proposed capital stack blends promoter and strategic equity,
development and impact equity, senior commercial debt and concessional
development finance. This structure spreads risk, reduces blended cost
of capital and aligns the project with the mandates of development
finance institutions such as the Industrial Development Corporation and
the Land Bank.
| Source of funds | ZAR ‘000 | % of total |
|---|---|---|
| Equity — promoters & strategic partners | 437,500 | 35% |
| Equity — development finance / impact investor | 250,000 | 20% |
| Senior debt — commercial term loan | 375,000 | 30% |
| Blended / concessional finance (IDC / Land Bank) | 187,500 | 15% |
| Total | 1,250,000 | 100% |
Table 21. Sources of funds — blended capital
structure.
9.3 Indicative Financing Terms & Cost of Capital
The proposed terms for each tranche of the capital stack are
summarised below. The blended structure is deliberately weighted toward
patient and concessional capital during the high-risk build phase, with
the senior commercial facility sized to a level that the asset base and
projected cash flows comfortably support. The blended pre-tax cost of
debt is approximately 11%, and the structure targets a weighted average
cost of capital in the low-to-mid teens consistent with the sector and
the development-impact profile.
| Tranche | Amount (ZAR m) | Indicative term | Pricing / return |
|---|---|---|---|
| Promoter & strategic equity | 437.5 | Permanent | Equity return via dividends & exit |
| Development / impact equity | 250.0 | 5–7 yr horizon | Equity return; impact mandate |
| Senior commercial term loan | 375.0 | 8 years | Market floating + margin |
| Concessional / blended facility | 187.5 | 10 years, 2-yr grace | Below-market fixed |
Table 22. Indicative financing terms by tranche.
Final terms subject to negotiation and due diligence.
Security for the senior facility comprises a first-ranking bond over
the processing plant and equipment, cession of key offtake contracts and
insurance proceeds, and a general notarial bond over movable assets. The
concessional facility ranks behind senior debt, reflecting its
developmental and risk-sharing role. The equity tranches absorb
first-loss risk, providing a substantial buffer that protects all debt
holders.
9.4 Returns to Investors
The equity case is underpinned by strong projected returns. Return on
equity moves from a modest loss in the Year 1 build year to
approximately 27% by Year 3 and around 30% by Year 5,
while return on capital employed strengthens steadily as assets are
sweated and debt is repaid. The combination of cash-generative
operations, asset backing and multiple exit routes (Section 13) provides
an attractive risk-adjusted return profile for both equity and debt
providers.
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 Siyanda Agro Processing & Exports (Pty) Ltd.