CALGRO M3 DEVELOPMENTS LIMITED - Calgro M3 Holdings Limited secures international funding to the value of USD20 million - CGRI

Calgro M3 Holdings Limited secures international funding to the value of USD20 million - CGRI

CALGRO M3 DEVELOPMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration Number 1996/017246/06
JSE Alpha code: CGRI
(“Calgro M3 Developments”)

CALGRO M3 HOLDINGS LIMITED SECURES INTERNATIONAL FUNDING TO THE VALUE OF
USD20 MILLION

Noteholders are advised that Calgro M3 Holdings Limited (“Calgro M3” or “the Company” or “the
Group”), being the holding company of Calgro M3 Developments, has secured its second
international funding facility to the value of USD20 million (“the funding facility”), on an unsecured
basis, with a capital and interest rate swap to hedge the foreign exchange movements for the
duration of the loan period.

The funding is provided by United States International Development Finance Corporation, an agency
of the United States of America (“DFC”). The DFC partners with the private sector to finance solutions
to the most critical challenges facing the developing world today. Furthermore, the DFC makes
America a stronger and more competitive leader on the global development stage with greater ability
to partner with allies on transformative projects.

The funding facility has been secured for a period of seven years, with an initial anticipated interest
rate of 9.12% and such further interest rates which shall be finalised on date of each drawdown.
Capital repayments are to be made in seven equal instalments commencing in the fourth year of the
loan.

There shall be no more than one disbursement in each fiscal quarter and no more than four total
disbursements throughout the duration of the funding facility. Each disbursement shall be in an
amount of not less than USD5 million. Calgro M3 has 30 months to fully draw on the funding facility
with the first disbursement required to be made within the first 12 months.

The capital will contribute to the Group’s funding requirements to deliver low-income housing units
on its secured pipeline in priority urban development areas. The Group’s current pipeline stands at
R27.7 billion.

Currently, 62.8% of Calgro M3’s borrowings comprise of funding obtained from local and
international development finance institutions with loan terms of between 4 and 6 years, respectively,
with the balance derived from the issuance of floating rate notes through Calgro M3’s Debt Capital
Markets Programme. Once the funding facility has been fully drawn down, this percentage increases
to approximately 71.4% of the Group’s total borrowings.

The Company has undertaken a major debt restructuring drive to ease balance sheet pressure
resulting in debt being repaid in the past 12 months amounting to R507 million, with the bulk of the
R507 million redeemed early. Correspondingly, it raised R396 million in new debt (excluding the
funding facility).

Johannesburg
17 February 2021

Debt Sponsor: Nedbank Corporate and Investment Banking

Date: 17-02-2021 04:16:00
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