Economic Merit – all businesses which apply to the Fund will be evaluated in accordance with IDC due diligence processes and criteria for economic viability;

Sustainability – the application must show that the firm at the application stage or the budget period of the Fund will be sustainable in terms of its application of the funds. Key areas include, financial, marketing, technical and environmental perspective;

Regional focus – only South African based firms may apply to the Fund. The Fund may not apply to their foreign operations;

Export / Import Replacement – Enterprises with the ability to export or compete with imports will be encouraged;

Jobs – Enterprises that create new employment will be encouraged. Saved jobs will also be considered;

Type of Enterprises – start-ups, expansions and expansionary acquisitions;

Due Diligence – Firms will be subjected to the normal IDC due diligence procedures;

Compliance – Applicants must comply with South African legislation and should behave in a socially and environmentally responsible manner;

BEE Requirement – Applicants must be at least BBBEE Level 4 or at least achieve Level 4 within 36 months after approval of an application;

Leverage – FICF funds to be blended at a leverage level of at least 50% funding from IDC;

Developmental – Preference will be given to businesses owned by BI, women, youth or people with disabilities.

Business Support – to be provided in a focused manner and limited to 15% of funding required per applicant, capped at R3 million.

Retrenchments – No retrenchments for the duration of FICF facility.

Localisation – For companies that have at least 50% of their input sourced locally, 20% of MCEP loan, capped at R2 million, may be converted into a grant after 24 months from first drawdown of the facility.

Pricing:

• MCEP Pricing
  • Debt: 0%
  • Subordinated Loans: RATIRR of 0%
• IDC Pricing
  • Debt – Currently Prime – 0.2% (pricing may change from time to time as it is based on IDC cost of funding)
  • Subordinated Loans – IDC Risk Pricing.

Maximum Term (including moratorium):

• Plant & Equipment – 84 months
• Working Capital – 48 months

Maximum Investment Size

• MCEP FICF R20 million per applicant (total funding limit across all MCEP sub-funds);
• IDC FICF – R20 million per applicant

An applicant can receive a total of R40 million if utilising maximum funding from MCEP FICF and IDC FICF.

Type of Funding Instrument – the fund will apply debt and quasi debt instruments;

Drawdown conditions: First drawdown must be within 12 months after approval.

Fees – Raising and commitment fees are excluded for MCEP FIFC. All other standard fees are applicable