INVESTMENT CRITERIA

General Criteria (non-exhaustive)

  • The investment of SEF starts from Rs 500,000 up to a maximum of Rs 25 Million;
  • Promoter(s) must have at least 51% equity stake in his company. SEF can only contribute up to a maximum of 49% of total equity in the company;
  • The project must be viable and sustainable within 2 years of SEF investment;
  • The company must be incorporated in Mauritius;
  • Business plan with full disclosure must be submitted and KYC requirements must be met;
  • Existing companies must have a good business track record;
  • Mandate to share information with banks – this is an arrangement whereby the client gives the SEF permission to request his/her bank for information;
  • Promoter must be fully engaged and involved in his business;
  • Promoter must display integrity in management of his enterprise and be willing to adopt good governance practices;
  • The Fund will exit the investee company within a maximum of 7 years

Additional information may be required to meet compliance and regulatory requirements.

Conditions for Redeemable Preference Shares

Companies having negative equity will not be considered when SEF is investing through redeemable preference shares in the company.

A personal guarantee is to be provided.

Floating/Fixed Charge to provided by the Company.

The redemption of Preference Shares at higher of Net Asset Value or at a cumulative dividend as from 8% p.a. capped to 11% p.a.

1 year moratorium period to repay SEF

Exit after maximum of 7 years

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Conditions for Ordinary Shares

No personal guarantee or charges.

There is no cap on the upside, usually an IRR of a minimum of 11% – 18% is expected on an investment through ordinary shares.

Established a good corporate governance framework.

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Conditions for Secured Debentures

A personal guarantee is to be provided.

Security Cover of at least 1.5 times of the amount contracted.

Floating and fixed Charge to be provided by the Company.

The redemption of debentures at a cumulative interest starting at 8% p.a and capped at 11% p.a.

6 months to 1 year moratorium period to repay SEF

Exit after maximum of 7 years

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Conditions for Unsecured Debentures

Solid business model and good corporate governance framework.

Floating Charge on Company.

The redemption of debentures at a cumulative interest rate (to be determined).

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Brief on SEF

Application to SEF + Submission of Business Plan & Appraisal Docs.

Investment Agreement & other Documents are prepared after approval of IC and Board.

Disbursement as per milestones agreed with client.

The SEF invests in start-ups, expansion projects and new lines of business.