Business Plan Africa Investor-Ready Plans

GrainCore — Funding Strategy & Capital Structure

The capital structure and the target funders — the South African and international institutions underpinning the funding strategy.

GrainCore Business Plan › Section 20 › Funding Strategy & Capital Structure

Section 20 · Business Plan

Funding Strategy & Capital Structure

The capital structure and the target funders — the South African and international institutions underpinning the funding strategy.

The R720 million requirement is structured as a blend of senior
commercial debt, development-finance debt, and equity in an approximate
60:40 debt-to-equity ratio — a prudent gearing level for an asset-backed
industrial project with strong, defensive cash flows.

Figure 20.1
Figure 20.1 — Capital structure (R720m total funding).
Funding source Amount (R’m) Type Indicative terms
Senior commercial debt 230 Term loan ~11.5% blended, 5-yr amortising, 12-mo grace
Development-finance debt 200 Term loan Concessional, aligned to industrialisation mandate
Equity 290 Ordinary shares Founders, PE investor, B-BBEE, ESOP
Total 720

Table 20.1 — Funding structure and indicative terms.

20.1 Target Funders

The project’s alignment with food security, industrialisation,
agricultural value-chain development, and job creation makes it a
natural fit for South Africa’s development-finance institutions,
complemented by commercial lenders and an institutional equity
partner:

South African institutions

  • Industrial Development Corporation (IDC) — industrialisation and
    agro-processing mandate.
  • Development Bank of Southern Africa (DBSA) — infrastructure and
    regional development.
  • Land Bank — agricultural value-chain financing.
  • National Empowerment Fund (NEF) — B-BBEE and
    transformation.

International institutions

  • International Finance Corporation (IFC) — private-sector
    development and food security.
  • African Development Bank (AfDB) — agro-industrialisation and
    regional integration.
Related sections

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 GrainCore Milling & Foods (Pty) Ltd.