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Confidence in Real People’s credit management
expertise, with further €10m boost from Dutch bank FMO
Real People Press Release: 22 July 2008
Real People attracts further €10m loan from stakeholder, Dutch
Development Bank FMO, bringing international funding to over R430m
Simultaneously, FMO ups its stake holding in credit specialist Real
People to 5%
South Africa, July 2 2008 - Real People has announced that the
Dutch Development Bank, FMO, has increased its term loan facility
by a further €10m, bringing FMO’s backing in Real People
to €33m. Simultaneously, in a further vote of confidence, FMO
has also acquired additional shares in Real People in order to expand
its initial stake holding in the credit specialist to 5%.
This is a significant investment for Real People, who has now raised
foreign funding of more than R430m since October 2006, with successful
funding partnerships in place. FMO, Aureos and Proparco are all
Real People funding partners.
Earlier in the year, Real People received its first North American
backing from Canada's Cordiant Capital of US$20m, in the form of
a Cordiant and FMO funded risk participation agreement.
In total, funding facilities in excess of R1bn have been secured
by Real People since 2007.
Real People’s increasing access to capital locally and internationally
and the consistent backing for Real People’s credit model
is particularly meaningful, given the global credit and liquidity
crunch that is currently being experienced. Real People’s
unsecured personal loans in South Africa and in Sub-Saharan African
countries enables clients to fund education, home improvements and
other household needs.
Arthur Arnold, FMO’s CEO, said: “FMO always strives
for additionality and seeks to facilitate its partners to attract
other financing by attaching its name as a reliable and stable partner
with an AAA rating. We strongly believe that our longstanding cooperation
can pave the way to an even more successful future for Real People.”
Comments Real People deputy managing director Neil Grobbelaar :
“FMO’s ongoing backing and increasing investment in
Real People highlights once again the attractiveness of Real People’s
business model, which entails the delivery of affordable financial
services in Sub-Saharan Africa with a specific focus on the provision
of personal credit in the region.
“We are delighted with the further strengthening of the partnership
between Real People and FMO. Real People shares FMO’s passion
to facilitate the delivery of affordable and responsible financial
services in Africa.” says Grobbelaar.
FMO’s CEO Arthur Arnold states: "We are happy to be
able to continue our support to Real People. In the past, we have
provided direct financing and have assisted Real People to attract
financing from Cordiant by arranging a syndicated facility. This
new step in our relationship is based on successful cooperation
in the past and on our belief that by providing access to finance
we are providing access to prosperity to the people of South Africa”.
Real People, established in 2001, provides credit management services
to the South African and sub-Saharan African market. Its divisions
include credit management services, in-store credit solutions for
3rd party clients, retail financial services, housing solutions,
assurance and cellular products.
About Real People:www.realpeople.co.za
Real People, established in 2001, provides credit management services
to the South African and sub-Saharan African market. Its divisions
include credit management services, in-store credit solutions for
3rd party clients, retail financial services, housing solutions,
assurance and cellular products.
About FMO: www.fmo.nl
The Netherlands Development Finance Company (FMO) is the international
development bank of the Netherlands. FMO invests risk capital in
companies and financial institutions in developing countries. FMO's
investment portfolio is EUR 3.4 billion, making it is one of the
largest bilateral development banks worldwide. Thanks in part to
its relationship with the Dutch government, FMO is able to take
risks which commercial financiers are not - or not yet - prepared
to take. FMO's mission: to create flourishing enterprises, which
can serve as engines of sustainable growth in their countries.
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