PetroStation SA — Funding Requirements and Use of Proceeds
The funding structure incorporates three sources to optimise the cost of capital and align repayment obligations with the business's cash flow profile. The Development Finance Institution (DFI) term loan from the National Empowerment Fund (NEF) or Industrial Development Corporation (IDC) provides patient…
Section 10 · Business Plan
Funding Requirements and Use of Proceeds
The funding structure incorporates three sources to optimise the cost of capital and align repayment obligations with the business's cash flow profile. The Development Finance Institution (DFI) term loan from the National Empowerment Fund (NEF) or Industrial Development Corporation (IDC) provides patient…
Funded by R7.4 million equity (40%) and R11.1 million in debt financing (60%), on a 4.1-year payback.
10.1 Capital Structure
| Source | Amount (ZAR) | % of Total | Terms |
|---|---|---|---|
| Owner Equity | R 7,400,000 | 40% | Personal savings, property equity; no repayment required |
| DFI Term Loan (e.g., NEF/IDC) | R 7,400,000 | 40% | 7-year term, prime + 1%, 12-month moratorium on principal |
| Oil Company Support/Loan | R 3,700,000 | 20% | Equipment financing, repayable over franchise term via margin deduction |
| TOTAL | R 18,500,000 | 100% |
The funding structure incorporates three sources to optimise the cost of capital and align repayment obligations with the business’s cash flow profile. The Development Finance Institution (DFI) term loan from the National Empowerment Fund (NEF) or Industrial Development Corporation (IDC) provides patient capital with favourable terms including a 12-month moratorium on principal repayments during the construction and ramp-up phase. Oil company support, which is standard in the industry, provides equipment financing repayable through a small per-litre margin deduction over the franchise term.
10.2 Loan Repayment Schedule
| Year | Opening Balance | Interest | Principal | Total Payment | Closing Balance |
|---|---|---|---|---|---|
| Year 1 | R 11,100,000 | R 1,276,500 | R 1,110,000 | R 2,386,500 | R 9,990,000 |
| Year 2 | R 9,990,000 | R 1,148,850 | R 1,110,000 | R 2,258,850 | R 8,880,000 |
| Year 3 | R 8,880,000 | R 1,021,200 | R 1,110,000 | R 2,131,200 | R 7,770,000 |
| Year 4 | R 7,770,000 | R 893,550 | R 1,110,000 | R 2,003,550 | R 6,660,000 |
| Year 5 | R 6,660,000 | R 787,500 | R 1,110,000 | R 1,897,500 | R 5,550,000 |
10.3 Security and Collateral
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First covering bond over the property (if freehold) or cession of leasehold rights
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General notarial bond over all movable assets including equipment, tanks, pumps, and inventory
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Cession of all-risks insurance policy covering fire, explosion, environmental liability, and business interruption
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Personal surety of the owner-director
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Cession of franchise agreement and related revenue streams
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