FirstRand winds up BEE refinancing package

20.05.10

FIRSTRAND and the FirstRand Empowerment Trust have said they have successfully completed a refinancing package relating to the black economic empowerment (BEE) transaction concluded in 2005.

 The completed package comprises the repayment of about R3,37bn of existing funding as well as the funding of transaction costs for the refinancing, and a distribution of R200m to the trust’s BEE beneficiaries.

 The payments were made from new senior funding of R1,54bn, new mezzanine funding of R444m, and the proceeds of R1,67bn from the placement of a portion of the trust’s FirstRand and Discovery shares, which was announced on April 8 this year.

 FirstRand CEO Sizwe Nxasana said the refinancing represented a good result, given the volatile market conditions.

 “FirstRand’s BEE transaction can be considered a highly successful partnership between FirstRand, Kagiso Trust, Kagiso Trust Investments, the Mineworkers Investment Company and Trust and the WDB Group.”

 Trustee Khotso Schoeman said : “This has enabled the trust to realise proceeds from the sale of FirstRand and Discovery shares and to repay a significant portion of the mezzanine funding … in place in the funding structure.”

weste@bdfm.co.za

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