Real People to Raise $14 Million This Year to Boost CapitalRenee Bonorchis
Real People Investments Holdings (Pty) Ltd., a closely held South African provider of small loans, plans to raise about 150 million rand ($14 million) of capital from shareholders this year.
That would increase capital-adequacy levels to as much as 36 percent by the end of the year from about 32 percent, Chief Executive Officer Neil Grobbelaar said in a phone interview from East London today. Shareholders include private equity firm Abraaj Group and a unit of London-based Old Mutual Plc.
Real People, which operates in South Africa, Kenya, Uganda and Tanzania, lends to small businesses and people who want to improve their homes or invest in education. The company will report a loss this year after incurring a one-time impairment when it stopped offering unsecured loans in 2013.
“We’ve made a large annual loss for the first time in our history,” Grobbelaar said. “In our continuing businesses, profit is up.”
Real People, which has about 2.4 billion rand of outstanding debt, according to data compiled by Bloomberg, may also issue bonds before December, he said. The company may issue its first Kenyan-shilling bond to support growth in East Africa, according to Grobbelaar.
The company is due to report its annual results on July 4.