TUHF MAGC (IFC-45022)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • South Africa
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 28, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
TUHF Holdings Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • Construction
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.67 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 960
Converted using 2024-02-12 exchange rate.
Loan Amount (USD)
$ 50.67 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 960
Converted using 2024-02-12 exchange rate.
Project Cost (USD)
$ 63.34 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 1200
Converted using 2024-02-12 exchange rate.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 30, 2024

Disclosed by Bank Feb 12, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the project disclosure, the proposed project consists of an IFC investment of up to ZAR 960 million with a 7-year tenor in the senior tranche of a ZAR 1.2 billion special purpose vehicle, to be setup and sponsored by TUHF Holdings Limited, South Africa. TUHF and a third-party investor will each invest ZAR 120 million in the junior and mezzanine tranches, respectively. The SPV will utilize the proceeds to finance the development of affordable EDGE-certified green residential buildings in South Africa. The Project is expected to be supported by the Market Accelerator for Green Construction (MAGC) Program as described in the Blended Finance Section.

IFC will also support TUHF with advisory services to improve its capacity to originate and manage loans for the development of certified green buildings. The full scope of the advisory services will be confirmed after consultations with the Company.

IFC, as implementing entity of the MAGC Program, expects to provide up to US$8.4 million in the form of a performance-based incentive (PBI). The blended finance-co-investment will enable TUHF to rollout a green building strategy to catalyze the refurbishment of existing buildings and develop more than 7,000 EDGE certified housing rental units in South Africa. The PBI is designed to benefit TUHF’s end-borrowers with the payment of the incentive to be contingent upon the development of green buildings meeting specific green construction eligibility criteria.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, TUHF was established in 2003 and is a leading provider of residential commercial property finance in the urban areas of South Africa. The company has financed over 46,940 housing units and 680 buildings, lending over ZAR7 billion in affordable housing finance.

TUHF’s largest shareholder is TUHF21 NPC (TUHF Group Holding Company), a South African non-profit entity with 32.85 percent. National Housing Finance Corporation (NHFC), a State-Owned Enterprise wholly owned by the Government of South Africa, is the second largest shareholder with 32.64 percent shareholding. Old Mutual Life Assurance Company Limited, a large South African insurance company and the Public Investment Corporation (PIC), a South African government owned entity, investing on behalf of the Government Employees’ Pension Fund (GEPF), each own 14.32 percent of TUHF. The remaining shareholders each hold less than 5 percent of the total shares outstanding.

As of September 2023, TUHF had total assets and loans of ZAR4.4 billion and ZAR3.6 billion, respectively. TUHF has a solid track record with raising long-term finance through securitization vehicles, with two vehicles registered on the Johannesburg Stock Exchange since 2018.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Financial Intermediary - TUHF Holdings Limited, South Africa:

Ilona Roodt - Chief Financial Officer
Phone: +27 10 595 9000
Email: ilonar@tuhf.co.za
Address: 12th Floor, West Wing, Libridge Building, 25 Ameshoff Street, Braamfontein, 2001

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works