Calgro raises first international funding


Calgro raises first international funding

Published Date: 2017-10-26 | Source: Stephen Gunnion | Author: Stephen Gunnion

Calgro raises first international funding

The housing developer will use the money help fund its pipeline of affordable housing

Calgro M3 has secured its first international funding in the form of a R387 million (€25 million) unsecured loan from the French Development Bank's private-sector financing arm Proprarco. The six-year facility has an anticipated fixed simple interest rate of 12.41%, payable in six-monthly intervals. The first draw-down of R278 million will take place in December, with the second draw-down next May.

Calgro says it plans to secure all international funding in Rands so as not to be exposed to any foreign exchange risk on its borrowing. CEO Wikus Lategan says Calgro has a R27 billion development pipeline and the more working capital it can secure, the quicker it can roll out that pipeline. The pipeline includes both its Integrated Residential Property Developments, from which some units will be retained in its REIT joint venture, as well as its Memorial Parks businesses.

Related article: Calgro M3 hampered by social unrest and drought

Proparco says the loan is in keeping with the role the AFD plays in the municipal and social housing sector in South Africa.

Calgro's shares gained 2.1% yesterday to close at R12.30.

Similar Stories