Background

As a leading African retail financial services group to the under-banked, Select has various existing funding sources, and we continuously seek new funding partnerships…

Funding Profile

As a non-deposit-taking institution, Select raises wholesale funding that it on-lends to customers. Our current funding structure is diverse and includes:

  • Shareholder funding (debt and equity);
  • Listed and unlisted Medium Term Notes (“MTN”) on local capital markets;
  • Debt structures with Impact Investors and Development Financial Institutions (“DFI”), including Soros Economic Development Fund (“SEDF”) and Old Mutual;
  • Other debt structures with 3rd party corporates and sovereign wealth funds; and
  • Various overdraft facilities with local commercial banks.

Select is an active issuer in local African capital markets, which provide an important source of local funding, and simultaneously promote the development of local African capital markets. In January 2007, Select registered a MTN programme on the Swaziland Stock Exchange (“SSX”). Since then, more than USD 45 million has been raised under the programme, which has been renewed three times.

Funding Strategy

Select has a further unlisted MTN programme in Malawi, and seeks other local MTN listings, as and when market timing ensues.

We seek to raise capital at both a group and a country level. Capital is raised at a group level for expansion into new geographies and to grow operations. Ultimately, Select seeks to raise local funding in the local capital markets of established, profitable jurisdictions, which has the advantage of providing funding in local currency terms, which decreases currency mismatches and dependency on foreign capital flows.

Investment Merits

Select offers a compelling investment case supported by the following factors:

  • Experienced and committed management team with over 17 years of microfinance and retail banking experience;
  • Expert technological platform for loan book origination & administration;
  • 3rd party loan administration, finance & operations reporting;
  • Financial inclusion to under-banked market with built-in lending mechanisms to ensure customer affordability;
  • Focus on housing & incremental housing loans;
  • Long term affiliations with leading DFI’s and technical partners;
  • Highest standards of corporate governance and reporting;
  • Part of the African Alliance Group, a premier investment banking group operating in 16 countries across Africa.

Investor Relations Contact

If you have any queries or would like to get in contact with us, please contact:

Anusha Naidu – Corporate Finance
Tel: (+27) 11 214 8462
naidua@selectafrica.net

Sean O’Sullivan – Group Chief Executive Officer
Tel: (+27) 011 214 8344
osullivans@selectafrica.net

Roger Zoio – Group Chief Financial Officer
Tel: (+27) 011 214 8446
zoior@selectafrica.net

Email:
investorrelations@selectafrica.net

Address:
Building 4, Illovo Edge Office Block
9 Harries Road
Illovo
Johannesburg
South Africa

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