AN INNOVATIVE INITIATIVE
The KZN Growth Fund is a debt fund, structured as a unique publicprivate partnership between the Provincial Government, commercial institutions and development finance institutions. It was established to finance medium to large scale infrastructure related projects throughout the KwaZulu-Natal province. The KZN Growth Fund is an innovative initiative aimed at creating sustainable economic development, job creation and black economic empowerment within the infrastructure sector. It is housed within the KZN Growth Fund Trust and is managed by KZN Growth Fund Managers (Pty) Ltd.
KEY FEATURES Fund Size: R1.1 billion
The Growth Fund targets infrastructure related projects of R30million and above. It focuses on economic sectors such as: Transport and logistics; tourism; energy; telecommunications; manufacturing; agro-processing; mineral benefication and mining; and bulk water and waste.
The KZN Growth Fund is also geared to co-fund with commercial banks and development finance institutions, thus offering infrastructure project sponsors a one-stop shop for accessing debt funding.
The Growth Fund provides project finance structured as either senior or mezzanine debt or a combination of both instruments over a loan period ranging fromfive to ten years.
REQUIRED DEVELOPMENT IMPACT
Each project will be required to generate new and sustainable job opportunities, foster black economic empowerment throughout the KwaZulu-Natal Province, and demonstrate an ability to repay the debt funding.
OTHER SELECTION CRITERIA
All projects submitted to the Fund need to satisfy the following broad criteria:
A 30% minimum BEE ownership, B-BBEE and gender should alsobe key considerations. A significant part of the BEE shareholding must reside within the KZN Province;
A negotiable equity contribution from promoters in line with each project's equity needs;
The project also needs to be at an advanced stage of implementation so as to enable disbursement within a period not exceeding six months.
The Growth Fund's objectives are aligned with the Provincial Growth and Development Strategy, and in particular the various sector priorities. It also subscribes to all the prevailing BEE policies as set out in the Department of Trade and Industry's Codes of Good Practice for B-BBEE, and the BEE Codes issued by National Treasury's PPP Unit.
Full Name of Company: KZN Growth Fund Industry Sector: Finance Nature of Business: Finance Reg. No.: 2005/022550/07 Services / Project: Debt financing through project finance between R30 million and R80 million for infrastructure related projects.
Examples of Funded Projects: Hillcrest Hospital:
A healthcare facility providing medical services through its various specialist practitioners. Dark Fibre Africa:
Provides telecommunication infrastructure that enables the provision of high-speed voice, data and video services to wide range of customers. Southern African Shipyards:
A leading commercial ; naval shipbuilder and ship repairing company, providing cost effective services and solution to themarine industry worldwide.
Customer Base: Entrepreneurs, corporates, BEE groups Holding Company: KZN Department of Economic Development and Tourism Date Established: June 2005 No. of Employees: 14 Auditors / Accountants: Auditor-General Bankers: ABSA