According to the EIB, the project consists in an equity investment in a USD 80m fund promoting financial inclusion in Africa through hybrid capital investments in financial institutions in Africa.
The project has the ultimate objective to promote financial inclusion in Africa, thus supporting employment and the economic development of micro, small and medium-sized enterprises (MSMEs).
The fund will provide a range of hybrid capital instruments (i.e. subordinated debt, holding company loans, additional Tier 1 capital, etc.) to inclusive financial institutions comprising Monetary Financial Institutions (MFIs), banks, leasing companies, housing finance institutions etc. Such investments will provide essential capital to financial intermediaries that were affected by the COVID-19 pandemic and have a crucial role in the economic development of the continent. Hybrid capital products are rarely available in the target market but have high crowding-in potential as they allow the investees to attract additional senior debt and leverage the financing to reach more clients.
The fund will promote high standards of service delivery and require the investees to adhere to best practice in terms of client protection principles and social responsibility.
As stated on the company's website, Verdant Capital is a leading investment bank and investment manager operating on a Pan-African basis and specialising in private capital markets. It boasts offices in Johannesburg, Ebene, Accra, Harare, Kinshasa and Frankfurt.
Verdant Capital is authorised by the Financial Services Conduct Authority in South Africa (FSP44608), licenced by the Financial Services Commission in Mauritius. The firm is a BaFin-registered AIFM.
Verdant Capital has completed or is currently executing transactions in more than 25 African countries.
Verdant Capital is the manager of the Verdant Capital Hybrid Fund, a fund investing hybrid capital into inclusive financial institutions on a pan-African basis.
No project contacts available at the time of disclosure.
Financial Intermediary - Verdant Capital:
Edmund Higenbottam - Contact person
Phone: +27 10 140 3700
Address: 3rd Floor, Tower A, 1 Cybercity, Ebene 72201, Republic of Mauritius
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