Financial Services Company Real People secures a further R98m in International Finance
Financial services specialist Real People has signed a R98m (10m) loan agreement with the Netherlands Development Finance Company (FMO). This brings the total funding for Real People from European sources this year to around R150m.
In February, French finance development institution, Proparco, entered into a 5m (R50m) loan agreement with Real People and late last year Global Equity Fund, Aureos Capital, took a 7% stake in the business.
FMO, the international development bank of the Netherlands, has also taken a minority stake in Real People as part of the loan agreement. Together, the two European aid agencies now hold a 7.46% interest in Real People.
Real People's Managing Director, Johan van Rooyen, says the facility from FMO, which is to be used exclusively for loans in Africa, will boost Real Peoples mission to rollout relevant, responsible and efficient consumer financial products on the continent..
"We look forward to being able to provide more people in Africa with access to financial services. Financial services are a vital part of the socio-economic vision of NEPAD, and, indeed, the key to economic sustainability and the enhancement of living standards and lifestyles the world over . We are delighted to be partnering with FMO, as they share our view of the importance of a well functioning financial sector in Africas growth."
Real People, with its head office in the Eastern Cape serving a national footprint, is one of the largest, privately-owned, financial services companies in the country. In 2006, Real People posted revenue for the year of R477m.
Says Real Peoples Strategy Director, Neil Grobbelaar:
"The attraction to Real People of quality international partners bears evidence to the markets confidence in our ability to manage credit. This agreement with FMO once again backs our faith in our business model, which is based on the provision of innovative and competitive credit products for emerging markets, through a combination of operational efficiencies and efficient capital structures."
