REAL PEOPLE INV HOLDINGS LTD - Real People Successfully Completes Capital Raise

Real People Successfully Completes Capital Raise

Real People Investment Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1999/020093/06)
Bond Issuer Code: BIRP
(“Real People”)

REAL PEOPLE SUCCESSFULLY COMPLETES CAPITAL RAISE


Real People Investment Holdings Ltd is pleased to announce the
successful conclusion of an equity capital raise, aimed at
restoring the capital base of the Group to levels where it can
access further funding lines for the growth of its continuing
businesses, being the provision of Responsible Finance through
its Housing and SME lending businesses in South Africa and East
Africa, and the purchase and collection of non-performing debt
portfolios, through its DMC brand in South Africa.


The conclusion of the capital raise marks the end of a period of
significant change for the Group over the last 18 months during which
the Group implemented:

*   a comprehensive shift in strategy which entailed closing its
    general purpose unsecured lending and cellular retail businesses
    in South Africa, and adopting a lending strategy focussed on
    exclusively providing economically productive “responsible
    finance” in the form of Housing and SME finance;
*   a significant cost reduction and rationalisation programme which
    resulted in the Group headcount reducing by almost 25%; and
    significant changes in its accounting estimates relating to
    financial assets as a consequence of a challenging collections
    environment and changes in market practice.

Following a favourable issue price, the recently completed capital
raise resulted in an improvement of approximately R385 million in the
Group’s capital base.
Subsequent to the capital raise, which was largely supported by
existing shareholders together with the Soros Economic Development
Fund, the Group’s capital adequacy levels are above the minimum
levels required by its various funding covenants. This together with
the ongoing operations delivering profits on a monthly basis together
with collections and portfolio quality largely stable and improving,
the Group is now in a position to access funding lines that have been
made available to it by various developmental finance institutions,
with the objective of resuming an acceptable rate of balance sheet
growth.
Commenting on the success of the capital raise, Group CEO Neil
Grobbelaar expressed his sincere gratitude to its participants for
the faith placed in the strategic direction of the Group and in the
Board and management team.


21 January 2015

Debt Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)

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