MICROCAPITAL BRIEF: Symbiotics Sells Bonds Worth $11m for South Africa’s SA Taxi

Symbiotics, a Switzerland-based investment company that focuses on emerging markets, recently announced that it has completed the second tranche of a bond transaction worth USD 11 million to benefit SA Taxi Development Finance (SA Taxi), a South African leasing company that finances “minibus taxi” operators in the country. The bonds were denominated both in US Dollars (USD) and South African Rand (ZAR). The financing is intended to help entrepreneurs start their own taxi services as well as helping replace older vehicles with more “environment-friendly” ones. The transaction was completed in partnership with the Dutch development bank Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (also known as Netherlands Development Finance Company) [1]. SA Taxi is a subsidiary of the South African non-deposit taking financial services group Transaction Capital.

From 2004 through June 2015, Symbiotics invested USD 2.2 billion in 225 financial institutions operating in 50 countries. As of June 2015, Symbiotics had completed impact bond transactions totaling approximately USD 229 million with 25 financial institutions in emerging and frontier markets.

By Arpita Sarkar, Research Associate

About SA Taxi Development Finance:

SA Taxi Development Finance (SA Taxi) is a lender to “minibus taxi” operators in South Africa. SA Taxi provides loans through finance leases as well as providing other products such as insurance, vehicle and spare parts procurement, direct vehicle sales, vehicle refurbishment, short-term comprehensive insurance and telematics. It is a subsidiary of the South African non-deposit taking financial services group Transaction Capital. Financial information on the firm is not available as of 2015.

About Symbiotics:

Founded in 2004, Symbiotics is a for-profit institution that provides investment and business services to investors in and practitioners of micro- and small enterprise (MSE) development. Symbiotics works with approximately 28 investment funds (MIVs) and a dozen institutional investors. The company also offers Syminvest, a microfinance investment intelligence platform designed to increase transparency and enhance investment capacity in the industry by monitoring regional markets as well as individual institutions. From 2004 through June 2015, Symbiotics invested USD 2.2 billion in 225 financial institutions operating in 50 countries. As of June 2015, Symbiotics had completed impact bond transactions totaling approximately USD 229 million with 25 financial institutions in emerging and frontier markets.

Sources and Additional Resources:

[1] Symbiotics Press Release: “Impact Bond Deal Made with Leasing Company in South Africa,” http://www.symbioticsgroup.com/news/latest-news/impact-bond-deal-made-with-leasing-company-in-south-africa

MicroCapital, September 6, 2014, Symbiotics 2014 MIV [Microfinance Investment Vehicle] Survey Report: Market Data and Peer Group Analysis, https://www.microcapital.org/microfinance-paper-wrap-up-symbiotics-2014-miv-microfinance-investment-vehicle-survey-report-market-data-and-peer-group-analysis/

MicroCapital, August 7, 2014, Symbiotics Issues $30m in Bonds to MicroCred China; India’s Arohan, Grameen Koota, Annapura Microfinance, https://www.microcapital.org/microcapital-brief-symbiotics-issues-30m-in-bonds-to-microcred-china-indias-arohan-grameen-koota-annapura-microfinance/

MicroCapital Universe Profile: Symbiotics Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Symbiotics+Group

MicroCapital Universe Profile: SA Taxi Development Finance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SA+Taxi+Development+Finance+%28SA+Taxi%29

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