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Transaction Capital: Growth rates outstrip local economy

Companies
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TRANSACTION Capital, the South African mini-bus taxi finance provider and debt collector, would raise as much as R2 billion within 12 months for its business as growth rates outstripped the local economy, it said yesterday. The firm is negotiating with overseas development finance institutions, Mark Herskovits, the chief financial officer, said, adding it also planned a second sale of asset-backed securities through its Transsec unit this year. Profit at the company is growing more than 10 times faster than the nation’s economy. Transaction Capital’s fiscal first-half earnings from continuing operations rose 22 percent, the company said. South Africa’s economy is forecast to expand 2 percent this year, according to the International Monetary Fund. The arranger of finance for some of the mini-bus taxis wanted to focus on organic growth, rather than expanding through acquisitions, said chief executive David Hurwitz. – Bloomberg

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