SME AND MIDCAP COMPANIES – IDC PRIVATE SECTOR FACILITY 2 (EIB)

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SMEs and
MIDCAP COMPANIES

IDC PRIVATE SECTOR FACILITY 2 (EIB)

OBJECTIVES

To assist SME and MIDCAP companies to access concessionary loan financing for CAPEX and medium to long-term working capital.

Qualifying Criteria

  • Application must meet NACE list of eligible sectors (contact Partnership & Programmes Department for the NACE list);
  • Available to SME and MIDCAP companies;
  • SMEs are defined as enterprises with less than 250 employees (full-time equivalent) and MIDCAP defined as enterprises with less than 3000 employees (full-time equivalent);
  • IDC is explicitly excluded as a Final Beneficiary;
  • Funding provided for CAPEX and medium to long-term working capital;
  • Final Beneficiary (company) and project location must be in South Africa;
  • For Final Beneficiaries active in more than one sector, the main activity shall be eligible. The main activity corresponds to the activity, which contributes most to the total gross value added – as measured by income before interest, taxes and depreciation – of the Final Beneficiary;
  • Final Beneficiaries engaged in any sector identified as non-eligible activity are not eligible for EIB financing;
  • No refinancing, except for projects approved not more than 6 months prior to submission of allocation request to EIB where a project is still in its implementation stage and no IDC funds have been drawn.

Instruments, Pricing and Thresholds

  • Loans (senior debt only);
  • Pricing – calculated by IDC’s Credit Risk Management Department based on 6-months Jibar plus 41.6 basis points (Prime-linked) before margins and other fees. Pricing from EIB provides the IDC with an opportunity to pass a financial advantage of at least 30 basis points before credit risk margins and incentives to its Final Beneficiaries;
  • Maximum funding of EUR12.5 million per transaction (or equivalent in other currency);
  • Total cost of a project must not exceed EUR25 million (or equivalent in other currency);
  • The term of the loan should be a minimum of 2 years and a maximum of 12 years;
  • Standard IDC fees apply.

OTHER

SCHEMES