EQUITY FINANCE

The primary instrument of investing by the NHFC remains debt funding with risk based loan pricing. However, over time, the NHFC has identified opportunities to take equity (& quasi equity) risk in investment opportunities aligned to our strategy. Typical equity & quasi-equity instruments: ordinary share capital, preference share capital, junior debt, mezzanine debt, & convertible debt.

This involves equity investing for the long term, in projects/companies aligned with our target market with the NHFC investment, planned to unlock funding from other organisations such as, the private sector and multi-lateral organisations. Investment horizon of the NHFC: +10 years; minimum target return: Prime rate + 5% per annum.

QUALIFYING Criteria

  • The applicant must be a registered legal entity and preference will be on supporting BEE rated companies led by youth and women (BEE Level 4 score or better)
  • There must be a demonstrable market opportunity aligned with the NHFC mandate
  • A financial co-partnership arrangement must be demonstrated through the project sponsor contributing material risk capital to the project/venture
  • The project feasibility must be financially viable per NHFC criteria.

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