South Africa’s mass transit sector secures US$ 10 million and ZAR 1.4 billion African Development Bank loans
The African Development Bank (www.AfDB.org) has approved over US$100 million in loans to SA Taxi Development Finance Limited, a wholly owned subsidiary of SA Taxi Finance Holdings Proprietary Limited, a vertically integrated business platform that provides a comprehensive financial and allied services offering to minibus taxi operators.
The minibus taxi system accounts for about 69 percent of all public transport trips in South Africa. The financing will support the Company’s growth plans and initiatives to support Small and Medium Enterprises (SMEs) in the country’s mass transit segment.
Approved by the Bank’s board on Thursday, 18 October, the financial package comprises of a senior loan of US$10 million and an associated facility of ZAR 1.4 billion (about US$$97 million) with an 8-year tenor, including 6-month grace period. In addition, the board also cleared the proposal to undertake a syndicated loan with commercial banks through the Bank’s A/B loan structure. The asset-backed financing operation is expected to attract funding interest from international commercial banks for the benefit of South Africa’s mass transit sector.