Oikocredit invests $5M in SA TAXI, South Africa
Worldwide cooperative and social investor, Oikocredit, has invested US$ 5 million in a six-year multi-currency syndicated loan facility totalling US$ 36 million with SA Taxi, a 98% owned subsidiary of Transaction Capital. The loan was arranged by Netherlands Development Finance Company, FMO, which invested US$ 10 million, in syndication with Cordiant (US$ 15 million), and Symbiotics (US$ 6 million).
SA Taxi is the leading provider of finance to small South African minibus taxi operators. The organization offers vehicle finance, insurance and other related products. The funds will be used for on-lending to small-to-medium enterprises (SMEs) for the acquisition of minibus taxis and income generating light commercial vehicles.
Oikocredit developing markets manager, Barbara Marcussen, said: “Oikocredit’s very pleased to be part of this syndicated loan. By investing in SA Taxi, we will contribute to providing around 19 million commuters with safe and reliable transport. The social impact that SA Taxi provides is significant, in line with our social mission.”
SA Taxi CEO commented: “This latest round of fund raising is very important for SA Taxi and its customers. The combination of repeat funding from existing investors as well as first time investors is most gratifying as it reflects ongoing confidence in our business as well as recognition of the important positive social and economic impact the business has on the South African taxi owner and commuter base.”
Providing funding to the transport industry in South Africa will contribute to the financial empowerment of taxi owners who, in turn, create employment for an estimated 400,000 drivers, rank managers and associated service providers.
ABOUT SA TAXI: SA Taxi is a leading specialised lender to SME minibus taxi operators in South Africa. SA Taxi provides loans through finance leases together with insurance and other related products, utilising its credit assessment, collections and capital management competencies, together with operational competencies including vehicle and spare parts procurement, direct vehicle sales, vehicle refurbishment, short-term comprehensive insurance and telematics.
ABOUT TRANSACTION CAPITAL: Founded in 2007, Transaction Capital is a non-deposit taking financial services group operating in the asset-backed lending and specialist risk services segments of the South African financial services sector. The company was listed on the Johannesburg Stock Exchange in June 2012.
FMO is a Dutch development bank investing in the private sector in developing countries. www.fmo.nl
CORDIANT is a Canadian firm managing four emerging market loan funds. www.cordiantcap.com.
SYMBIOTICS is an investment company specialized in emerging, sustainable and inclusive finance. http://www.symbioticsgroup.com/