INVESTMENT GUIDELINES

  • SEF provides equity financing to small and medium companies in Mauritius.

  • Investment range of SEF: minimum Rs 500,000 to a maximum of Rs 25,000,000. The promoters should invest at least 51% in Company and SEF to invest up to a maximum of 49% in the Company.

  • SEF investment is primarily towards capital expenditure.

  • All productive sectors are eligible for financing.

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

  • Only viable and feasible projects are considered.

  • Collateral may be required in some cases.

  • The majority of shareholding to be held by Mauritian national, ordinarily resident in Mauritius.

  • Depending on amount invested by SEF, a minimum of 1 director may be appointed on Board of the Investee Company.

The type of financial instrument considered are Ordinary Shares, Preference Shares and Debenture. The issue of the type of instrument is decided on a case to case basis

Reedeemable Preference Shares

Main terms and conditions:

  1. The period of investment by SEF will be up to a maximum period of 7 years
  2. 1 year moratorium period
  3. Dividend rate of 8% p.a capped at 11% p.a
  4. Personal guarantee and floating charge shall be required
  5. Fixed charge/ fixed and floating charge on the assets of the Company shall be required on a case-to-case basis
  6. The redemption of the preference shares is done yearly (monthly/ quarterly/ half yearly – as may be agreed with the promoter)
  7. No early exit fees

Ordinary Shares

Main terms and Conditions :

  1. Entry and Exit prices are determined and may be negotiated with the promoter.
  2. SEF will consider an investment through ordinary shares in the following cases:
    1. Investment above Rs 3 M
    2. Existing, well established and sound fundamentals and outlook
  3. Minimum of 1 Director of SEF will be appointed by the Board on the investee company
  4. The expected IRR for the project is expected to between 11% to 18% depending on risk level.
  5. The period of investment by SEF will be up to a maximum of 10 years.

Debentures

Debentures may be considered in the following specific cases:

1. High risk project
2. Negative equity
3. Strong asset based

Main terms and Conditions :

  1. The redemption of the preference shares is done yearly (monthly/ quarterly/ half yearly – as may be agreed with the promoter).
  2. No early exit fees.
  3. Interest rate of 8% p.a capped at 11% p.a.
  4. Personal guarantee and floating charge/ fixed charge shall be required.
  5. 6 months to 1 year moratorium period to repay SEF.