Makalani boosts portfolio
Makalani boosts portfolio with R125 million part-funding of Exxaro empowerment transaction
Makalani Holdings, South Africa's only listed mezzanine debt funding company, has further boosted its portfolio with the part-funding of the Exxaro empowerment transaction.
The transaction boosts the value of Makalanis portfolio to R1.7 billion. The effect on the yield of the portfolio stays at 14.02%.
Makalani has provided funding of R125 million to Main Street 333 (Proprietary) Limited, a black-owned and controlled company, to acquire an interest in the Exxaro empowerment transaction.
Exxaro is the diversified mining resources company that resulted from Kumba Resources Limited's empowerment transactions. Exxaro has a diverse and world-class commodity portfolio in coal, mineral sands, base metals and industrial minerals, with exposure to iron ore through a 20% interest in listed Kumba Iron Ore Limited.
The transaction follows last weeks announcement of two transactions worth a total of R405 million, namely R85 million in credit exposure to the Peermont Global Tusk Holdings (Proprietary) Limited (PGTH) empowerment transaction, and R320 million as part funding to an empowerment company that has acquired a significant stake in a subsidiary of a multinational company. The details will be known once the multinational and the empowerment company make an announcement of their own.
Makalani Chief Investment Officer, Sydney Mhlarhi says the recent transactions further demonstrate the high quality of the assets Makalani now has in its portfolio. "Our portfolio reflects some of South Africas leading empowerment transactions, and puts us at the forefront of mezzanine funding of empowerment deals," says Mhlarhi.
"Moreover our recent transactions have validated up our previous caution in seeking transactions. We have grown the company with quality investments at very attractive yields. Following our recent repurchase of 2.567 million linked units (10.27% of linked units in issue) and these transactions, our total invested assets now make up over 75 % of our total assets," he says.
