The recent finalisation of a R2,6bn funding package for BEE investment company, Brimstone Investment Corporation will allow the organisation to implement the next phase of its growth plan by means of significant further investments into targeted market sectors.
Nedbank Corporate and Investment Bank (CIB) acted as sole mandated lead arranger for the funding package for Brimstone.
According to Stuart Harrison, Co-Head of Debt Finance for Nedbank CIB, the successful completion of the deal can be directly attributed to the strength of the long-standing relationship that has existed for more than a decade between Nedbank and Brimstone.
He emphasises that this relationship goes far beyond banking services as Brimstone was one of Nedbank Group’s BEE Business Partners in the bank’s successful broad based black economic empowerment transaction, which delivered an estimated R8,2bn value to more than 500 000 BEE shareholders when it matured in 2015.
Nedbank continues to collaborate with many of its previous BEE shareholders outside of their normal working relationship thanks to the formation of separate impact funds in partnership with Brimstone, WIPHOLD and Izingwe (as well as Old Mutual), through which the partners have committed a combined R300m in support of entrepreneurial development, commercialisation of small-scale farming, housing development and the growth of township economies.
Harrison points to the alignment of the business models and transformation commitments of the two businesses as having played a key role in the successful completion of the deal. “Brimstone’s business model is one of long-term profitability that sustains true broad-based economic empowerment and a lasting positive social impact,” he explains, “and Nedbank considers it a privilege to have been trusted with this important transaction, the positive results of which will be the continued growth and enhanced positive impact of an organisation that is one of South Africa’s most important transformation facilitators.”
Following the implementation of the R2.6bn funding package, Brimstone said that they were pleased to have Nedbank CIB as a long-term financial partner. “The Nedbank CIB team designed a financial package that aligns perfectly with our growth strategy and will enable Brimstone to further deliver real returns”.