FluxCap Financial Services — Funding Requirement & Capital Structure
The funding requirement and the capital structure - the R1.8 billion raise across equity, senior debt and a revolving facility, plus the securitisation warehouse programme underpinning FluxCap.
Section 22 · Business Plan
Funding Requirement & Capital Structure
The funding requirement and the capital structure – the R1.8 billion raise across equity, senior debt and a revolving facility, plus the securitisation warehouse programme underpinning FluxCap.
The R1.8 billion raise
| Instrument | Amount (Rm) | Terms (indicative) | Purpose |
|---|---|---|---|
| Ordinary equity (Tranche 1) | 720 | Priced round at close; board seats; standard minority protections | First-loss capital: FY2027–28 book, losses, capex |
| Senior debt facility | 900 | Prime + 200bp; 5-year; security over book; covenants below | Book funding from FY2028; drawn as originated |
| Revolving working-capital facility | 180 | Prime + 250bp; 364-day renewable; undrawn backstop | Liquidity insurance through ramp |
| Total programme | 1,800 | — | — |
Beyond the raise: the warehouse programme
The R1.8 billion programme funds the plan fully only through FY2029.
Thereafter the book’s growth to R5.8 billion requires a securitisation
warehouse scaling to approximately R4.2 billion of committed
capacity by FY2031 (R3.96 billion drawn). This is disclosed as
a material incremental funding requirement, not an afterthought: the
warehouse close at month 26 is a gating milestone on the Gantt, and the
entire operating discipline of the first two years — audited vintages,
granular data tape, 8% provisioning, DSRA funding — is designed to make
the Company warehouse-eligible on schedule. Warehouse advance rates of
~70% against the net book, with equity and retained earnings providing
the junior strip, keep the structure within rating-agency norms for SA
unsecured consumer paper.
Indicative covenant package (senior facility & warehouse)
| Covenant | Threshold | Plan headroom (tightest year) |
|---|---|---|
| EBITDA interest cover | ≥ 1.75x | 2.30x in FY2030 (+31%) |
| Equity / gross loan book | ≥ 15% | 18.8% in FY2031 (+380bp) |
| Cost of risk (rolling 12m) | ≤ launch curve + 400bp | Glide-path dependent — tightest covenant in practice |
| 90+ dpd ratio | ≤ 14% of gross book | Managed via vintage triggers |
| Minimum liquidity | ≥ R80m + 3 months’ opex | Met via revolver backstop |
| Growth throttle | Origination pause if two covenants within 10% of threshold | Structural — converts credit risk into growth risk |
DFI and funding-partner alignment
The financial-inclusion mandate, measurable social outcomes and
institutional governance make FluxCap a natural fit for
development-finance participation alongside commercial capital. Target
funding partners include the Development Bank of Southern Africa (DBSA),
International Finance Corporation (IFC), Industrial Development
Corporation (IDC), Futuregrowth Asset Management, Nedbank CIB and
Standard Bank CIB for debt and warehouse tranches, with Knife Capital
and Quona Capital representative of the fintech-focused equity investors
the round targets.
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 FluxCap Financial Services (Pty) Ltd.