CAPE TOWN - CALGRO M3 Holdings, holding company of Calgro M3 Developments, has secured its second international funding facility of $20 million (R290.6m) on an unsecured basis, a statement said yesterday.
The funding was provided by the US International Development Finance Corporation (DFC). The DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today.
The DFC also made the US a stronger and more competitive leader on the global development stage with greater ability to partner with allies on transformative projects, the statement said.
The funding was secured for seven years, with an initial anticipated interest rate of 9.12 percent and further interest rates that would be finalised on the date of each drawdown.
Capital repayments would be made in seven equal instalments starting in the fourth year of the loan. Calgro M3 had 30 months to fully draw on the funding facility.
The capital would contribute to the group’s funding requirements to deliver low-income housing units on its secured pipeline in priority urban development areas – the current pipeline stood at R27.7 billion.
Currently, 62.8 percent of Calgro M3’s borrowings comprises funding from local and international development finance institutions.
BUSINESS REPORT