Aether Living — Capital Structure & Funding Plan
The ZAR 12.3 billion capital structure across DFI senior debt, sponsor equity, commercial bank syndication and other sources, the IFC facility, the gearing and the funding plan.
Section 18 · Business Plan
Capital Structure & Funding Plan
The ZAR 12.3 billion capital structure across DFI senior debt, sponsor equity, commercial bank syndication and other sources, the IFC facility, the gearing and the funding plan.
18.1 Capital Structure
The total capitalisation of ZAR 12.3 billion is structured to
optimise the cost of capital, tenor matching, and risk allocation
between the four funding sources. Each source has been selected for its
alignment with specific portions of the asset base and for its specific
risk-bearing capacity.
| Funding Source | Amount (R bn) | % of Total | Tenor | Pricing |
|---|---|---|---|---|
| IFC Senior Debt Facility | 6.20 | 50.4% | 15 years | JIBAR + 425bps |
| Sponsor Equity | 2.10 | 17.1% | Permanent | Target IRR 24% |
| Commercial Bank Syndication | 3.40 | 27.6% | 5–7 years | Prime + 200bps |
| Climate Finance Grants | 0.60 | 4.9% | Non-repayable | — |
| Total Capitalisation | 12.30 | 100% | — | — |
18.2 Capital Drawdown Schedule
18.3 Use of Proceeds
| Use of Funds | Amount (R bn) | % of Total |
|---|---|---|
| Land Acquisition (4 precincts) | 2.85 | 23.2% |
| Vertical Construction | 5.85 | 47.6% |
| Renewable Energy Infrastructure | 1.05 | 8.5% |
| Water & Wastewater Infrastructure | 0.55 | 4.5% |
| Digital Platform & Connectivity | 0.45 | 3.7% |
| Master Planning, EIA, Design | 0.65 | 5.3% |
| Working Capital | 0.45 | 3.7% |
| Contingency Reserves | 0.45 | 3.7% |
| Total Use of Funds | 12.30 | 100% |
18.4 IFC Senior Debt Facility Terms (Indicative)
| Term | Indicative Detail |
|---|---|
| Facility Size | ZAR 6.2 billion |
| Tenor | 15 years with 4-year availability period |
| Grace Period (Principal) | 5 years |
| Amortisation | Mortgage-style from Year 6 |
| Pricing | JIBAR + 425 basis points |
| Security | First-ranking over project assets and shares |
| Covenants | DSCR ≥ 1.30x, LLCR ≥ 1.40x, Net Debt/EBITDA ≤ 4.5x |
| Reserves | DSRA equal to 6 months debt service |
| Conditions Precedent | EIA approvals, equity in, security package, ESAP, insurance |
18.5 Currency Risk Management
Approximately 18% of total capital expenditure is USD-linked
(primarily solar PV modules, battery storage systems, and certain
digital platform infrastructure). To manage exposure, the Company will
(a) match approximately 10% of total revenue (predominantly from
institutional rental take-out where USD-linked offshore counterparties
are involved) to USD-denominated obligations, and (b) employ forward
currency contracts and options to hedge approximately 75% of unmatched
USD capex exposure over rolling 18-month windows.
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 Aether Living Developments (Pty) Ltd.