News

FMO boosts access to finance for Real People’s low-income clients in South Africa.

Dutch Development Bank FMO has increased its term loan facility to Real People in South Africa by a further €10 million, bringing FMO’s backing in Real People to €33 million. Simultaneously, in a further vote of confidence, FMO has also acquired additional shares in Real People in order to expand its initial stake holding in the credit specialist to 5%.

This is a significant investment for East London-headquartered Real People, who has now raised foreign funding of more than R430m since October 2006, with successful funding partnerships in place. FMO, Aureos Capital and Proparco are all Real People funding partners.

Real People’s increasing access to capital locally and internationally and the consistent backing for Real People’s credit model is particularly meaningful, given the global credit and liquidity crunch that is currently being experienced. Real People’s unsecured personal loans in South Africa and in Sub-Saharan African countries enable clients to fund education, home improvements and other household needs.

Comments Real People deputy managing director Neil Grobbelaar: “FMO’s ongoing backing and increasing investment in Real People highlights once again the attractiveness of Real People’s business model, which entails the delivery of affordable financial services in Sub-Saharan Africa with a specific focus on the provision of personal credit in the region”.

FMO’s CEO Arthur Arnold states: "We are happy to be able to continue our support to Real People. In the past, we have provided direct financing and have assisted Real People to attract financing from Cordiant by arranging a syndicated facilty. This new step in our relationship is based on successful cooperation in the past and on our belief that by providing access to finance we are providing access to prosperity to the people of South Africa”.

“We are delighted with the further strengthening of the partnership between Real People and FMO. Real People shares FMO’s passion to facilitate the delivery of affordable and responsible financial services in Africa.” says Grobbelaar.

Earlier in the year, Real People received its first North American backing from Canada's Cordiant Capital of US$20m, in the form of a Cordiant and FMO funded risk participation agreement.

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FMO:

Nicoline van Slingelandt
Communications Officer
E n.van.slingelandt@fmo.nl
T +31(0)70 314 9790
M +31(0)6 225 630 47

About Real People: Real People, established in 2001, provides credit management services to the South African and sub-Saharan African market. Its divisions include credit management services, in-store credit solutions for 3rd party clients, retail financial services, housing solutions, assurance and cellular products. www.realpeople.co.za

About FMO:
The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. FMO's investment portfolio is €3.4 billion, making it is one of the largest bilateral development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.