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Case Studies

raisins

Case Study 2

Jurisdiction: Johannesburg, South Africa

  • Raisin processing and packaging for export
  • Large confectionary driven offakers concentrated in Europe and the United States
  • Agricultural, Raisins
  • USD 12.5m Working Capital facility secured by Stock and Debtors
  • Loan Facility
  • Cession of Debtors
  • Parent Company Guarantee
  • Opportunity to fund the company’s purchase of inputs
  • Export driven sales, which act as a natural mitigant of translation risk

The business is profitable, solvent and backed by a solid holding. There is sufficient collateral to cover the loan. We feel that this would be a good investment for Barak Fund Management.   Investment Advisor

metal

Case Study 3

Jurisdiction: Johannesburg, South Africa

  • Tailings recovery and mining site rehabilitation
  • Large Global trader fills the off taker role
  • Performs the site rehabilitation for a major JSE Listed mining company
  • Metals, Minerals and Ores- Lead and Silver tailings
  • USD 8m pre-finance secured by product and parent company guarantee :
  • Stock under Purchase and repurchase agreement
  • Cession of Debtors
  • Cash Collection Account
  • Collateral Management
  • Parent Company Guarantee
  • Opportunity to provide working capital into a high yielding transaction
  • Underlying product referenced to terminally priced commodities
  • Exceptional management team with previous
  • Two fold impact finance angle- Rehabilitation and Job sustainability

There is sufficient collateral to cover the loan. We feel that this would be a good investment for Barak Fund Management based on the high yielding return and the security package provided.   Investment Advisor

copper

Case Study 4

Jurisdiction: Lubumbashi, Democratic Republic of Congo - DRC

  • Part of a large group that mines copper and processes the ore into copper cathodes, which are all exported directly to a large international commodity trading house as part of an off take agreement, which arose from initial project finance previously provided
  • The company needed financing for the purchase of additional chemical supplies utilised in the catalytic copper extraction process
  • Metal, Minerals, Ores - Copper
  • USD 3m Import stock finance facility with the following collateral structures:
  • Stock under Purchase and repurchase agreement
  • Guarantees from Parent companies
  • Cession of shares in Company
  • Cession of shares in Dubai group company
  • Investors in the group have put over USD c100m of their own capital into the project
  • Additionally, numerous credit lines had been established by banks and international trading houses for the group, most of which are significantly larger than Barak’s investment
  • The cession over shares in other group companies would give Barak leverage in the event of default

We looked at the business in its entirety and saw value in the operations and the underlying assets of the company, one being a high quality gram/tonne copper mining project in the DRC.   Investment Advisor

noodles

Case Study 5

Jurisdiction: Accra, Ghana

  • Company established by an ex UK Banker on his return to his home country
  • The business is a growing fast moving consumer good (FMCG) trader focusing on the lower LSM bracket
  • One of their products includes 2 minute noodles, a rapidly growing staple source in many African markets
  • Fast moving Consumable Goods - FMCG
  • USD 400,000 Import stock finance facility with the following collateral structures:
  • Stock under Purchase and repurchase agreement
  • Personal signed guarantees
  • Cession of debtors
  • The Fund sourced the opportunity through one of its existing clients who served as a credit reference for the business
  • Post initial discussion with the client we reviewed the company’s financial position which was audited by a large Top 4 global firm
  • The company had solid growth and profitability over the last three years, prior to the deal date, but more importantly has been able to meet all its obligations with suppliers and creditors. These both are important indicators of the cash generative ability of the business

With the continuous growth of the Fund, it was imperative that new markets were established to continue to further diversify the book. The company provided an opportunity considering its strong balance sheet and its capital financing requirements.   Investment Advisor

fertiliser

Case Study 6

Jurisdiction: Zambia

  • Family owned and operated commodity trading business
  • Highly regarded management within the local market
  • Agriculture - Fertilizer
  • USD 15m Import stock finance facility with the following collateral structure
  • Stock under collateral management
  • Purchase and repurchase agreement used
  • Credit insurance over debtor
  • Guarantees from Parent companies
  • Cession of debtors
  • Escrow collection account used
  • View taken on offtaker and mitigated by credit insurance
  • Additionally, numerous credit lines had been established by banks and international trading houses for the group, most of which are significantly larger than Barak’s investment
  • The cession over shares in other group companies would give Barak leverage in the event of default

With the continuous growth of the Fund, it was imperative that new markets were established to continue to further diversify the book. The company provided an opportunity considering its strong balance sheet and its capital financing requirements.   Investment Advisor

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Past performance is no guarantee of future returns and the fact sheets provided are for illustrative purposes only. The value of investments and income that are dependent on the performance of underlying assets or other variable market factors may vary from time to time. Investors must take cognisance of the fact that all the information provided are of historic nature.