Retail Capital, a South African lender to small and medium-sized enterprises (SMEs), recently raised ZAR 150 million (USD 10 million) in debt capital from Triodos Investment Management, a Dutch impact investor. Retail Capital issues collateral-free loans to retailers, in amounts based on their monthly cash flow. Since it was established in 2011, Retail Capital has served approximately 38,000 customers with loans totaling ZAR 4.5 billion (USD 281 million). The firm’s shareholders include Apis Partners, Crossfin and Future Growth. Verdant Capital advised Retail Capital on the Triodos deal.
Triodos Investment Management, founded in 1990, is a subsidiary of the Netherlands-based Triodos Bank, which seeks to help individuals and businesses use their money to promote “positive social, environmental and cultural change.” As of 2020, Triodos Bank has EUR 20 billion (USD 23 billion) in assets under management and serves approximately 728,000 customers in Europe. Triodos Investment Management reports total assets of EUR 6.1 billion (USD 7.0 billion) as of 2021. During 2020, the company issued debt and equity to approximately 109 financial institutions, which were serving a total of 18 million borrowers in Africa, Asia, Eastern Europe and Latin America.
Verdant, which has offices in Democratic Republic of Congo, Ghana, Mauritius and South Africa, provides capital raising and financial advisory services as well as assisting in mergers and acquisitions.
By Adhya Singh, Research Associate
Sources and Additional Resources
Verdant press release
https://verdant-cap.com/track_record/verdant-capital-sole-advisor-arranger-for-usd-10-m-debt-and-equity-capital-raise-for-retail-capital/
Retail Capital homepage
https://www.retailcapital.co.za/
Triodos homepage
https://www.triodos-im.com/
Triodos 2020 annual report
triodos-investment-management—annual-report-2020.pdf
Verdant Capital homepage
https://verdant-cap.com/
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