Norsad provides ZAR 150 million to Grobank
17/03/2020
Norsad, an impact investor providing structured financing solutions to mid-market growth companies in Southern Africa, has availed a ZAR 150 million (circa. USD 10 million) medium-term facility to the South Africa specialised commercial agricultural bank, Grobank Limited. This facility is Norsad’s second investment in South Africa and further supports its diversification across the Southern Africa region.
Grobank Limited is a banking institution focusing on the full value-chain of the food and agriculture sector from farm to table. Grobank is wholly owned by GroCapital Holdings, a partnership between the agricultural group, AFGRI Group Holdings; the Toronto listed financial services holding company, Fairfax Africa Fund LLC and; the Government Employees’ Pension Fund. Grobank’s partnership with its shareholders has seen the bank evolve its offering to take advantage of their shared knowledge of business banking, the niche alliance banking offering and the food and agriculture industry.
Norsad’s investment is earmarked for expansion of the agricultural banking business, supporting Grobank’s strategy in the sector. As an impact investor, food security and financial inclusion are at the core of Norsad’s objectives. This is also aligned with the Southern African Development Community (SADC) Regional Indicative Strategic Development Plan (RISDP) on sustainable food security and the UN Sustainable Development Goal (SDG) on Zero Hunger. Integrated agriculture and financial institutions are amongst Norsad’s preferred sectors and Norsad Finance has a portfolio of investments within these sectors in other SADC countries including Angola, Botswana, eSwatini, Mauritius, Mozambique, Namibia, Zambia and Zimbabwe.
Meraki Capital acted as financial advisor and funding arranger to Grobank on the facility. Meraki Capital has deep experience in advising financial institutions across the continent.
Bennie van Rooy, CEO of Grobank said: “Grobank is proud of its association with Norsad and honoured to partner with an institution that is equally passionate as we are about the food and agricultural space. We look forward to build and strengthen this partnership to ultimately benefit the sector and contribute to food security across the continent”
Marisa Meyer, Managing Director at Meraki Capital said: “In support of its food and business offering, this transaction strengthens Grobank’s ability to invest in the world’s largest and arguably its most important market, agriculture, especially with the renewed focus on food security, socio-economic progress and sustainability.”
Zubair Suliman, Investment Director at Norsad Finance, lead in the transaction said: “We are delighted to partner Grobank in their strategy to support the full value-chain of the food and agriculture sector. Agribusiness is one of the mainstays of the South African economy and this facility further strengthens food security and generates foreign income through exports.”
About Grobank
Grobank first entered the market in 1947, as the South African Bank of Athens, and today operates as a commercial specialist bank across every area of the food and agriculture sector value chain, whilst also offering an expanding range of capabilities and services to businesses outside of this sector. Grobank’s food, agriculture and business banking division coupled with Alliance Banking, enables Grobank to offer a holistic banking offering. More information at www.grobank.co.za
About Meraki Capital
Meraki Capital is a pan African corporate finance firm offering advisory services and capital solutions across sub-Sahara Africa. More information at www.merakicapital.co.za
About Norsad Finance
Norsad Finance is an impact investor offering bespoke stretch debt and mezzanine finance solutions to mid-market growth companies in Southern Africa. Norsad has a 30-year track record of investing in the Southern Africa region and is backed by Nordic Development Finance Institutions (namely Finnfund, IFU, Norfund and Swedfund) and regional financial institutions. More information at www.norsadfinance.com
