Nedbank Financing

By | October 24, 2017

Nedbank Financing

Aircraft Finance

Our team of aircraft finance professionals offers advanced expertise and customised solutions, with a focus on Africa and the Middle East.

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Our offering

Nedbank is a prominent player in aircraft finance, with a focus on Africa and the Middle East. Our role on the African continent is clearly highlighted by our participation in the recent USD250 million commercial aircraft finance facility for Kenyan Airways for 10 Embraer jets, which was awarded the Regional Jet Deal of the Year by Airfinance Journal.

Our team of aircraft finance professionals offers advanced expertise and customised solutions. It structures, arranges and executes high-value transactions on a global scale. Pricing and structuring is tailormade for each client, taking into account the risk profile and specific aircraft being financed.

We help clients finance the following:

  • Commercial jets for international airlines
  • Major aircraft lessors
  • Regional airlines
  • Business jets

Transactions above USD15 million will be considered.

Asset Based Finance

Grow your business with Nedbank’s wide range of asset finance solutions. Whether you need finance for a corporate car fleet, commercial trucks, yellow metal or aviation, we can design finance packages that meet the unique needs of your business and its cashflow.

Asset based finance
  • Fleet vehicles
  • Commercial vehicles
  • Manufacturing equipment
  • Agricultural equipment
  • IT hardware
  • Earth-moving / construction equipment
  • Materials-handling equipment
  • Aviation
  • Medical
  • Mining
Fleet management
  • Full-maintenance leasing
  • Managed maintenance
  • Operating rentals
  • Card solutions (fleet, fuel, oil, tolls)

Carbon Finance

Future-proof your business with Nedbank’s carbon finance expertise. We devise strategies to mitigate risks and maximise returns through implementation of innovative carbon finance opportunities.

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Our team

When you’re preparing for a carbon-constrained future where carbon emissions could significantly impact your profits due to taxes and regulation, you need a specialist partner to help mitigate risks, maximise revenue opportunities and provide long-term sustainable solutions.

Nedbank has a dedicated Carbon Finance team to help your business reduce its energy consumption, prepare for future carbon tax regulation and expenses, find new revenue streams and prepare for the future of carbon governance.

 

Our approach

We devise strategies based on our expertise in cross-functional finance to help you lessen the impact of greenhouse gas emissions on the environment.  We assist you in five key areas:

  • Sustainability – devising carbon strategies and policies.
  • Carbon advisory and footprinting services
  • Identification and development of carbon projects.
  • Identification and development of energy efficiency and renewable-energy projects.
  • Carbon trading – purchase and sale of carbon credits to monetise carbon revenue streams and offset carbon tax obligations.

Benefits for your business

  • More revenue – earn additional revenue through annuity streams and make previously unprofitable projects possible.
  • Less expense – reduce energy bills and consumption, mitigating any non-renewable energy projects.
  • Positioned and ready – prepare for carbon legislation proactively, adapting to changing consumer attitudes.
  • Informed and improving – know your carbon footprint and include your reduction efforts in your sustainability reporting.

Corporate Lending and Advances

Nedbank Corporate and Investment Banking has the expertise to structure and execute a range of innovative medium- and long-term debt solutions tailored to meet your business’s general funding needs.

Solution for all seasons

From working capital and capital expenditure, to new projects and mergers and acquisitions, our solutions are designed around the long-term strategy of your business, including:

  • meeting your business’s general needs;
  • alleviating normal business capital pressures;
  • revitalising cashflows; and
  • smoothing out the general peaks and troughs of cashflows.
  • structuring of the Balance Sheet to ensure appropriate mix of short vs medium-long term funding

Our funding is tailored to meet your business’s medium to long term working capital, capital expenditure and acquisition needs as follows:

  • Working capital funding solutions are typically designed to finance the business’s stock, debtors, creditors and overhead cycles, with consideration being given to the most appropriate use of medium-long term versus short term funding solutions based on the nature of the underlying assets and the mix of core versus non-core debt levels.
  • Capital expenditure funding will be designed to meet the business’s ongoing maintenance capital expenditure needs as well as its expansion capital expenditure requirements.
  • Acquisition funding is structured to meet the business’s funding requirements relating to the acquisition of new business opportunities, whether these relate to acquisition of shares or operating assets. Funding is structured to ensure cashflows are matched to the debt profile.

Our offering can be done on a secured or unsecured basis, and includes the following specific funding instruments:

  • Medium- to long-term loans, with either bullet or amortising-repayment profiles
  • Medium-long term revolving credit facilities
  • Bridging finance
  • Medium- to long-term letters of guarantee
  • Medium- to long-term letters of credit
  • Preference shares
  • Discounting of assets and/or income streams

Export Credit Finance

Nedbank Corporate and Investment Banking’s Export Credit Finance team offers you long-term financial solutions, whether you are buying or selling capital equipment. We have unparalleled experience in Export Credit Finance to help your business grow.

Our team

  • Buyers and suppliers of capital equipment; and
  • Project-related capital expenditure

For the public and corporate sectors, using support from export credit agencies (ECAs), global multilateral insurance agencies and private market insurance to provide credit enhancement and risk mitigation.

By combining structuring with risk mitigation, Nedbank’s Export Credit Finance team is able to provide cost-effective financing solutions for projects throughout Africa and the rest of the world.

For suppliers

ECA-supported finance helps you with:

  • Delivering a competitive bid; and
  • Managing payment, currency and political risks.

For buyers

ECA-supported finance helps you access:

  • Hard currency and competitive finance;
  • Appropriate repayment terms;
  • Diverse sources of local and international funding; and
  • Increased borrowing limits.

Nedbank’s dedicated Export Credit Finance team has established relationships with all major ECAs and provides customised solutions for a broad range of clients – from greenfields projects to established corporate and public sector entities – in different industries and countries.

An intimate understanding of ECAs and other risk mitigation and credit enhancement support structures and conditions make our team the ideal export credit partner for your business.

Global Commodity Finance

Nedbank Corporate and Investment Banking specialises in structured trade and commodity-finance-related transactions with a focus on Africa.

Leading the way in commodity financing

The unit is comprised of skilled and experienced individuals and prides itself on its ability to design and implement innovative financial structures.

The team offers a variety of solutions with an emphasis on:

  • The import of crude oil, metals and minerals from developing countries; and
  • The export of food, agricultural commodities and refined fuels to developing countries.

Our team is supported by local and international market knowledge in areas such as finance, law, insurance and various banking disciplines and designs unique financial structures providing clients with a sustainable competitive edge in the markets in which they operate. Funding solutions include preexport finance, borrowing-base financing, collaterally managed facilities, revolving credit facilities, payment undertakings, purchase letters of credit, confirmation and discounting of letters of credit, as well as customised solutions based on the specifics of a transaction.

Infrastructure, Energy and Telecomms

Nedbank Corporate and Investment Banking recognises significant opportunities across Africa in the financing of large infrastructure, energy-related and telecommunications projects across the continent.

Our offering

Nedbank recognises significant opportunities across Africa and has long been considered the market leader in the financing of large infrastructure, energy-related and telecommunications projects across the continent. Our team of sector specialists is responsible for initiating, executing and managing transactions that include:

  • Limited-recourse finance;
  • Acquisition finance;
  • Public-private partnerships; and
  • Project finance deals.

Accolades

We are recognised and awarded for our innovations and accomplishments in the fields of infrastructure, energy and telecommunications.

Infrastructure

Nedbank’s infrastructure team understands that opportunities on the African continent are a basis on which a broader developmental plan can be built. The oil, gas and mining sectors need enabling infrastructure such as transport, ports, energy generation, pipelines and storage. They will also need related infrastructure, including water supply, energy transmission, property and estates, telecommunications, industrial facilities and airports to succeed.

We see the holistic solution across the infrastructure project lifecycle and provide debt solutions across the spectrum of infrastructure projects by using various instruments, such as senior, mezzanine and consumer price index debt, corporate debt and bonds.

Our infrastructure projects span across the continent and include commercial infrastructure, such as roads, rail links, ports, airports, power plants and pipelines, and public or social infrastructure, such as hospitals and schools.

Energy

Renewable energy has changed the face of South Africa (and Africa as a continent) and the energy team has succeeded in positioning Nedbank as the leading South African bank involved in the renewable-energy space. With 23 deals funded, R25 billion committed and 10 awards won in the Renewable Energy Independent Power Producer Programme (REIPP), we are the clear leader in the energy space.

Nedbank has to date provided debt funding of more than R32.6 billion to the REFIT transactions, with an equivalent level of interest rate hedging and forex hedging, earning significant non-interest revenue for both Investment Banking and Global Markets. Individual exposures range from R550 million to R1,8 billion.

Nedbank was joint mandated lead arranger for the Euro 623 million of the landmark Lake Turkana Wind Power Project in Kenya. To date the Lake Turkana Wind Power Project is the largest single private sector investment in Kenya and, at 310 MW, it will be the biggest wind farm in sub-Saharan Africa and in the top 10 worldwide.

The importance of this project was recognised by the following two prestigious international awards:

  1. African Renewables Deal of the Year (2014) at the PFI Awards (Thomson Reuters); and
  2. African Renewables Deal of the Year (2014) at the IJGlobal Europe & Africa Awards (Infrastructure Journal and Project Finance Magazine).

Nedbank has also acted as a joint mandated lead arranger, underwriter and lender of US$125m of the Cenpower 340-MW combined-cycle gas turbine power plant in Ghana. The approximate total debt requirement was US$650m, funded through a limited-recourse facility supported by the Export Credit Insurance Corporation.

The Cenpower project is regarded as a landmark for independent power producers (IPPs), not just in West Africa, but also on the continent as a whole, and has already won Africa Power Deal of the Year in the PFI Awards for 2014. The power sector in Ghana is in need of additional capacity and the project is already blazing a trail for further IPPs in the country.

The team’s mandate follows a full-sector approach and includes financing to parastatals and corporates within the energy sector through:

  • Limited-recourse finance deals within the electricity, oil and gas, as well as biofuels sectors, both internationally and in Africa;
  • Financing to parastatals and corporates within this sector;
  • Funding various renewable-energy projects, from landfill gas, to solar and wind turbine power – especially with South Africa’s electricity supply at stake.

We look forward to working with government and other environmentally minded businesses and financial institutions to ensure that renewable energy remains a key driver of our country’s sustainable future.

Telecommunications

We are one of the lead arrangers and providers in telecommunications finance in sub-Saharan Africa. With indepth knowledge of the sector we have a broad industry focus – from fixed-line operators and the mobile sector to infrastructure sharing and broadband capacity provisioning through an undersea cable and satellites.

We finance clients from greenfields to maturity across the entire spectrum of capital required, providing innovative and flexible financing solutions customised to each client’s requirements.

Our service philosophy is premised on partnering with our clients and by gaining deeper understanding of their needs to provide optimum solutions.

Leveraged Finance

If you want a successful acquisition and leveraged-finance deal, you need a team that specialises in helping you through the entire process.

Your needs, our services

We can help you assess, structure and deliver financial arrangements for:

  • acquisitions;
  • leveraged buyouts;
  • preference-share financing;
  • mezzanine financing;
  • BEE transactions;
  • management buyouts; and
  • capital expenditure programmes.

We also provide innovative funding solutions for the acquisition of businesses as going concerns and productive assets/shares where facilities are primarily serviced from cashflows and value creation, supported by the security of the underlying acquired assets.

Your trusted partner

Our team has proven experience in arranging, underwriting, structuring, funding and syndicating all of the above transactions and more.

We also maintain longstanding relationships with local financial institutions, private-equity boutiques and corporate-finance teams to ensure a seamless experience.

Mining Finance

Nedbank Corporate and Investment Banking’s experience and commitment to innovation in resources and mining finance drive our team to create solutions that suit our clients.

Mining finance

A wealth of experience and commitment to innovation drive our team to create unique solutions to meet the needs of our African mining clients. Our experienced financiers in Johannesburg and London offer superior lending capacity, while our inhouse technical skills ensure better servicing of junior mining companies, mid-tier producers and majors. Our broad range of skills – from acquisition finance through to project finance – enables us to design unique, unconstrained funding solutions suited to each of our client’s specific requirements.

Funding solutions

Our full-spectrum finance offerings, backed by specialist industry knowledge and expertise, see us serving clients ranging from African junior miners in need of development capital to mid- to large-cap South African miners seeking acquisition and growth opportunities. Our sought-after funding solutions typically include:

  • Project finance
    We arrange and underwrite limited-recourse project finance for greenfields and brownfields projects. These project finance packages typically include the designing, structuring and execution of the senior and standby debt facilities, commodity and interest rate hedging structures and overall transaction management, as well as day-to-day monitoring throughout the life of the transaction. Our indepth understanding of the mining industry means that innovative funding solutions underpin all the facilities we develop and offer.
  • Acquisition finance
    We design, arrange and underwrite debt packages that enable our clients to acquire target companies in the mining sector.
  • Structured debt
    We develop innovative finance solutions to help operating companies meet their general funding or working capital requirements.
  • Export credit finance
    We arrange and implement project finance transactions supported by export credit agencies, developmental finance institutions and political-risk insurance providers.
  • Commodity hedging
    We have extensive experience in customising metal-hedging solutions to meet client, shareholder and price protection needs. Most base and precious metals can be hedged using a variety of derivative instruments to structure both long- and short-term hedging programmes.

Mining advisory services

We place a particular priority on adding value to African mining companies, which we do through the provision of expert advisory services delivered by our experienced teams based in London and Johannesburg. We also advise our Africa mining clients on merger and acquisition and capital‑raising opportunities.

Oil and Gas Finance

Nedbank Corporate and Investment Banking’s Oil and Gas Finance team provides funding to independent and emerging oil and gas companies operating in Africa and Europe.

Our offering

Nedbank’s Oil and Gas Finance team provides funding to independent and emerging oil and gas companies operating in Africa and Europe. With experienced financiers in London and Johannesburg, Nedbank is well positioned to provide suitable financing solutions for upstream assets.

Nedbank has an established track record in the oil and gas sector, with clients in the mature producing regions of Nigeria, Angola and the North Sea as well as the emerging basins of the Atlantic margin, the East African rift system and the Rovuma basin.

Nedbank’s oil and gas financing solutions include:

Reserve-based lending

With this option:

  • Debt facilities are raised against 1P (development) or 2P (producing) reserves;
  • Loan availability is driven by cover ratios and technical and price assumptions;
  • The flexible structure allows fields to be added or removed from the facility; and
  • The term is typically five to seven years.

Preexport finance 

With this option:

  • Funding is raised against the forward sale of barrels to be produced in fields with an established production history.
  • Debt is repaid by direct sales receipts; and
  • The term is typically three to five years.

Development finance

With this option:

  • Funding is raised for late-stage field development projects where suitable completion support and technical due diligence are available.

Gas project finance

With this option:

  • Typical project financing can be considered where a suitable long-term gas offtake contract is available.

Revolving credit facilities

With this option:

  • Corporate debt facilities are based on balance sheet strength and the underlying portfolio of oil and gas assets.

Private Equity

The Private Equity team at Nedbank Corporate and Investment Banking (CIB) is one of southern Africa’s prominent private equity investors, with an established track record of successfully investing and partnering with management teams across a diverse range of mid-market growth companies and sectors.

Our offering

Nedbank CIB Private Equity invests equity capital in acquisitions, buyouts and the expansion of mid-market unlisted companies. We operate in a way similar to an independent private-equity fund manager, but invest capital directly off Nedbank Group’s balance sheet, which gives us the advantage of not being constrained by the usual investment and disposal time horizon pressures.

CIB Private Equity adopts a strong partnership philosophy to investing, combined with uncompromising moral and ethical standards and a concerted focus on environmental, social and governance issues. We acquire significant minority shareholdings in attractive growth companies and partner with the management team to support strategic growth initiatives. We are able to leverage and access extensive resources and support from across the Nedbank Group to add value to our investee companies.

Managed by a team of investment professionals with extensive experience spanning a broad range of industries, CIB Private Equity typically invests between R50 million and R300 million in each investee company. We target companies that have products or services with strong growth potential in the emerging consumer class or in other high-growth countries in sub-Saharan Africa or that are in the supply chain of infrastructure investment.

Our investment transactions include:

  • Management buyouts and buy-ins
  • Expansion and acquisition capital
  • Replacement capital
  • Introduction and funding of BEE investors
  • Delistings

Property Finance

Nedbank Property Finance is a market leader in commercial property finance, enabling you to realise your property opportunities through a diverse range of financing solutions. This includes development finance, equity participation, investment, affordable housing project finance, solutions for the listed sector and residential development finance.

Market-leading commercial property finance solutions

When a commercial property opportunity is recognised and finance is needed, Nedbank Property Finance leads the market in providing agile solutions that help realise your vision.

Nedbank Property Finance specialises in financing commercial, industrial, retail and residential development property, offering loan funding to developers, owners, occupiers and investors. Agile financial solutions include access to undrawn funds, interest-only periods, fixed and floating interest rates, flexible repayments and residual value transactions.

What we do

Development Finance

Usually short-term in nature, development finance solutions can be designed for small-, medium- and large-scale buildings, conversion or redevelopment projects, and major refurbishments.

Equity participation

Through our specialised Property Partners Division, we enhance your flexibility in property-based investments and operations by taking an equity finance position in property developments and acquisitions, land investment and portfolio assemblies. Our selective approach in this type of financing, together with our position and strength in the market affords you increased risk mitigation and the ability to enter into larger transactions with limited equity. Nedbank’s interest in these equity transactions is achieved either through direct shareholding, mezzanine loans, or profit-sharing arrangements.

 

Listed sector solutions

A history of active engagement with property funds and premier companies listed on the JSE has resulted in deep knowledge and insight, making Nedbank Property Finance the market-leading provider of finance solutions for the listed-property market. Enabling this dynamic sector involves agility and highly customised lending that is secured by a portfolio of commercial, residential, retail or industrial properties.

Investment solutions

For the investor seeking income-producing returns with capital appreciation that outperforms other investment options. Owner-occupiers of industrial and commercial property and the listed property sector can expect finance options that are crafted and honed to optimally meet their financing requirements within commercial, industrial and retail property investment.

We enable smart investment solutions through long-term lending; loans secured against property investment portfolios; and structured investment loans allowing investors to customise their agreements in terms of amortisation, interest rates, residual values and cashflows.

Affordable housing finance

At Nedbank Property Finance, we are proud of our role in transforming development opportunities into quality communities. This is made possible through the focused approach of our Affordable Housing division.  Funding opportunities for new affordable housing ventures are identified through the extensive network of developers across the public and private sectors. A selective partnership approach with credible and experienced developers with a proven track-record enables us to utilise a full spectrum of resources to ensure value-driven service and delivery of quality projects to the market.

Residential development finance

Backed by a discerning approach, we provide funding solutions for large-scale residential housing developments, enabling key developers that have a sound reputation for delivering residential stock to the market. A minimum transaction amount of R5 million is set out for property developers or residential investors in need of short-term bridging finance for the acquisition of land, the installation of services, and the construction of buildings.

The benefits of our approach

Our client-centred mandates and processes are matched to the specific needs of your particular opportunity and business with a view to yielding a solution that unlocks value and a range of benefits for your business:

  • As a consistently active, market-leading financier, we share with you our intimate understanding of the broader property landscape.
  • Our decentralised mandates and decisionmaking enable quicker turnaround times in responding to your needs.
  • The deep, industry-specific experience and expertise of our sales and credit teams enable us to act in an advisory capacity, adding greater value to your property opportunity.
  • Our relationship-focused structure enhances your access to our senior management across all disciplines.

UCT-Nedbank Urban Real Estate Research Unit

According to a report by Jones Lang Salle, South Africa is home to over 15 million square metres of office space, while the rest of Africa, including north and sub-Saharan Africa, has a mere six million square metres. The continent is witnessing remarkable growth of its city economies, with a rate of urbanisation that, in some areas, exceeds 9% a year. The commercial real estate sector in Africa has been described as ‘poised for liftoff’ by expert analysts.

To address this challenge the Department of Construction Economics and Management at the University of Cape Town (UCT) has partnered with Nedbank Corporate and Investment Banking (CIB) to form the UCT–Nedbank Urban Real Estate Research Unit under the directorship of Associate Professor Francois Viruly. The primary source of funding is CIB, which has committed R1 million per year to the unit for the next four years. With this funding the unit will develop an interdisciplinary research platform to identify issues within and solutions to urban real estate investment, finance, economics and management problems in Africa.

Robin Lockhart-Ross, Managing Executive of CIB’s market-leading Property Finance business, says that investment in and funding of property ventures and developments necessitate taking a long-term view that is properly informed. The importance of high-quality real estate research in investment and financing decisions can therefore not be understated. He says that Nedbank’s association with UCT and its commitment to research are consistent in promoting thought leadership in the property industry.

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