Premium Hibiscus Business Plan — Funding Requirement and Structure
The funding requirement, how each tranche is applied and the terms on which it is drawn.
Section 20 of 25
Funding Requirement and Structure
Jump to section
- i. Important Notice and Basis of Preparation
- 01. Executive Summary
- 02. Investment Thesis
- 03. Company and Business Overview
- 04. Problem, Customer Need and Value Proposition
- 05. Products and Services
- 06. Industry Analysis
- 07. Market Analysis
- 08. Competitive Landscape
- 09. Business Model
- 10. Go-to-Market Strategy
- 11. Operating Model
- 12. Management and Organisation
- 13. Strategic Plan
- 14. SWOT Analysis
- 15. Risk Analysis
- 16. ESG and Sustainability Impact
- 17. Implementation Roadmap
- 18. Financial Plan
- 19. Funding Requirement and Structure
- 20. Investment Case and Returns
- 21. Sensitivity and Scenario Analysis
- 22. KPIs and Management Dashboard
- 23. Conclusion and Recommendation
- 24. Appendices
The venture requires a blend of permanent capital to fund the J-curve and the structural component of working capital, plus a revolving facility for the seasonal swing. Getting this mix right is the single most important financing decision.
Use of funds
|
Use of funds |
USD ‘000 |
|---|---|
|
Capital expenditure (farm, plant, fumigation, storage, vehicles) |
5,200 |
|
Peak net working capital (seasonal aggregation) |
4,930 |
|
Pre-operating, certification & mobilisation |
500 |
|
Contingency |
300 |
|
Total requirement (indicative) |
10,930 |
Table 21. Indicative use of funds. Peak working capital is a facility limit, not a cash outlay.
Sources and structure
|
Source of funds |
Amount USD ‘000 |
Role |
|---|---|---|
|
Equity — Tranche 1 (Year 1) |
3,000 |
Core capital at financial close |
|
Equity — Tranche 2 (Year 2) |
2,000 |
Released on pilot volume, offtake & commissioning |
|
Equity — Tranche 3 (Year 3) |
1,000 |
Released on certification & value-added milestones |
|
Term loan (DFI-blended) |
3,000 |
7-year, 3-year moratorium; funds capex |
|
Trade-finance revolver (limit) |
4,500 |
Seasonal working capital; self-liquidating |
Table 22. Funding structure. Equity is staged against milestones to manage dilution and de-risk deployment.
Debt serviceability
|
USD ‘000 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Term loan outstanding |
3,000 |
3,000 |
3,000 |
2,250 |
1,500 |
|
Revolver drawn (year-end) |
0 |
0 |
0 |
328 |
0 |
|
Term debt service (P+I) |
300 |
300 |
300 |
1,050 |
975 |
|
CFADS |
(586) |
(267) |
597 |
1,561 |
2,523 |
|
DSCR (x) |
-1.95x |
-0.89x |
1.99x |
1.49x |
2.59x |
|
Net debt / EBITDA (x) |
n/a |
n/a |
3.08x |
1.12x |
0.37x |
|
Interest cover (x) |
-2.35x |
-1.91x |
1.12x |
5.70x |
11.61x |
Table 23. Debt serviceability. DSCR stays above 1.4x from the first amortising year and rises to 2.6x; leverage falls to 0.4x by Year 5.