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CustomCapitalSPV

Sector: Commercial • Location: South Africa

Source: International Finance Corporation (IFC)

Project
Completed

The project consists of IFC supporting the establishment of a securitization program of SME equipment rental contracts originated and serviced by Custom Capital (Pty) Ltd (“CC”), an equipment rental company acquired by Mercantile Bank Limited (“MBL”) in 2011. Initially the portfolio size is proposed to be approx. ZAR 350 million, but is expected to grow over time.Under the project, IFC would purch

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Project Information

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The project “CustomCapitalSPV” is an infrastructure initiative in the Commercial sector, located in South Africa. Taiyo aggregates data on it from International Finance Corporation (IFC).

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Participants

Sponsoring Agency

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Company

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Status

Original status

completed

Taiyo status

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Taiyo last update

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Email

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Address

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Description

Description

The project consists of IFC supporting the establishment of a securitization program of SME equipment rental contracts originated and serviced by Custom Capital (Pty) Ltd (“CC”), an equipment rental company acquired by Mercantile Bank Limited (“MBL”) in 2011. Initially the portfolio size is proposed to be approx. ZAR 350 million, but is expected to grow over time.Under the project, IFC would purchase a ZAR denominated senior note of up to ZAR 240 million to a newly created, bankruptcy-remote SPV. Custom Capital ("CC") would retain the subordinated notes.IFC’s investment ensures initial funding to the SPV with a revolving portfolio of equipment rentals for a period of up to 3 years, after which the programme is expected to issue public securities in the South African capital market.

Original sub-sector

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Original Currency

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Original budget

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Source

Source reliability

High

Data quality score

100%

Source

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URL

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More Details

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