RMBconstructssinglePPPinvestmentplatformforVulindlelaHoldings

 

Client challenge

Vulindlela Holdings’ portfolio of Public Private Partnerships (PPPs) was banked on a standalone basis, not taking the rest of the property development company’s portfolio into account. BEE partners are often required to be active in the project itself as well as being a shareholder. There are a limited number of BEE investors that can do both, and Vulindlela Holdings is one of them.

The RMB solution

Through the issuance of preference shares, RMB employed its infrastructure project finance expertise to create an innovative, single platform for Vulindlela Holdings’ PPP portfolio. All shares in Vulindlela’s PPP projects are now owned through a single vehicle. This means that instead of looking at single project cash flows, investors can now look at the portfolio as a whole. As mandated lead arranger and preference share agent, RMB also introduced Vulindlela Holdings to another three PPP projects. As a lender in these projects, RMB has vetted the projects and has confidence in the structures.

Proven results

Vulindlela Holdings has been restructured with a single investment vehicle, ensuring that the portfolio of projects is consolidated and can be assessed as a whole. Furthermore, the property development company has increased its PPP portfolio with an additional three projects – the transaction totalling R159million.

Client	Vulindlela Holdings
Size of the deal	R159million
Sector	Infrastructure, Construction, BEE
Capabilities	Project finance within the BEE domain
RMB's role	Mandated lead arranger, preference share agent
Country	South Africa