Nexora Capital — Funding Requirement & Capital Stack
The use of the R750m equity raise, the full R5.15bn capital programme, the covenant and structure dashboard and the cumulative sources and uses underpinning Nexora.
Section 25 · Business Plan
Funding Requirement & Capital Stack
The use of the R750m equity raise, the full R5.15bn capital programme, the covenant and structure dashboard and the cumulative sources and uses underpinning Nexora.
Use of the R750m Equity Raise
| Allocation | Amount (Rm) | Deployment |
|---|---|---|
| Lending capital pool (first-loss) | 350 | Junior notes in WarehouseCo; enables R1.75bn senior capacity at 80% advance rate |
| Technology development | 150 | Platform build M2–M14; AI engine; integrations |
| Market expansion | 90 | Phase-1 provincial rollout; Phase-2 entry costs |
| Regulatory capital | 60 | SA licensing; initial regional requirements |
| Customer acquisition | 70 | CAC funding through Gate 1 and 2 |
| Working capital | 30 | Corporate liquidity pre-revenue |
The Full Capital Programme
| Layer | Peak size | Provider profile | Pricing |
|---|---|---|---|
| Equity (Series A) | R750m | DFIs (IFC, DBSA, IDC, FMO, AfDB) + growth equity (Quona, Knife Capital, Lightrock) | Equity returns |
| Series B / mezzanine (M40) | R300–400m | Existing investors + mezzanine funds | Equity / 16–18% mezz |
| Warehouse tranche 1 | R750m | SA bank securitisation desks; DFI credit lines | JIBAR + 425bps |
| Warehouse tranches 2–3 | to R4,400m | Syndicated warehouse; rated notes from Y5 | JIBAR + 350–425bps |
| RCF (corporate) | R300m | Relationship bank | JIBAR + 375bps |
The warehouse phases in three tranches gated on portfolio
performance: R750m at M13, upsizing to R1.6bn at M28 and R4.4bn from
M54, with a rated note issuance targeted alongside tranche 3 to compress
margin. Interest reserves equal to six months of tranche-1 senior
interest are pre-funded from the equity raise, addressing the
interest-cover profile flagged in the findings.
Covenant & Structure Dashboard
Corporate interest cover is negative through FY2028 and below
conventional thresholds until FY2030, which is precisely why the debt
sits at portfolio level. Warehouse covenants are structured on portfolio
metrics the ramp can actually satisfy: 90-day arrears below 7.5%, excess
spread above 6%, advance rate at or below 80% with step-downs on trigger
breach, and eligibility criteria on obligor size, sector concentration
and vintage seasoning. The equity-to-book cushion declines from 584% to
15% by design as leverage phases in; 15% remains above the 12% floor
typical for seasoned SME warehouse structures.
Programme Sources & Uses (Cumulative, FY2027–FY2031)
| Sources | Rm | Uses | Rm |
|---|---|---|---|
| Series A equity | 750 | Loan book growth (net) | 5,500 |
| Series B / mezzanine (M40) | 350 | Platform & regional capex | 460 |
| Warehouse (net draws) | 4,400 | Cumulative operating losses (FY27–29) | 96 |
| RCF (peak utilisation) | 253 | ECL allowance & working-capital build | (217) |
| Cumulative operating cash (FY30–31) | ≈380 | Interest reserves & minimum cash | 294 |
The sources-and-uses view makes the programme’s arithmetic legible at
a glance: roughly 85% of all capital deployed over five years is the
loan book itself, funded 80% by the warehouse. Equity, Series A plus the
M40 raise, exists to absorb first loss, fund the platform and carry the
ramp-year losses. Any negotiation that trades equity quantum against
advance rate should be tested against this table: a five-point
advance-rate reduction at tranche 3 requires roughly R275m of additional
junior capital.
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 Nexora Capital (Pty) Ltd.