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Debt Solutions

Corporates and funders, connected directly?

Consider it possible.

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FAQ

An easy-to-use funding platform for counterparties looking to be brought together in the debt capital markets.

Driven by efficiency, Funding Solutions restores the balance in the relationships between corporates and funders. Addendum’s simple platform connects a large community of diverse corporate issuers and institutional funders in the debt capital markets. This gives corporates unparalleled access to funding at a minimal cost with no upfront outlay required. Of the many benefits, funders gain access to a diversified range of fixed-income assets; corporates gain the freedom to compare and choose only the borrowing rates that suit their needs perfectly. Both parties also benefit from simpler negotiations with standardised base documentation shared by all users and final terms agreed electronically through a secure and confidential environment. All coming together to create a seamless, simplified and transparent process like nothing before.

Corporate benefits

  • Gain direct access to a broad network of funders
  • Diversify your funding sources
  • Have funders compete on pricing
  • Review tailored pricing from multiple sources in one place
  • Trade discreetly with no listed disclosure requirements or pricing in the public domain
  • Set limits on your overall borrowing or guarantee utilisation
  • Reduce your reliance on more costly committed facilities
  • Only pay as you borrow (no commitment or hidden fees)

Funder benefits

  • Free access to a diversified range of fixed income opportunities
  • Easy online access to credit information packs
  • Set pricing for targeted corporates with specific terms
  • Participate on a level playing field through our fair and transparent process
  • Proposals are never shared with other funders – to safeguard in-house views
  • Benefit from a robust legal framework with enhanced investor protection
  • Drive the process by offering pricing first
  • Liquidity available through the platform’s secondary market

Benefits for all

  • Standardised, but still customisable agreements that can cater for additional clauses as and when required
  • Improved efficiency leaves more time to focus on the rest of your business
  • Simple and trusted eco-friendly online execution processes
  • Access a secure system with same day settlement via Strate
  • Manage future cashflows precisely using the cash flow management tool
  • Access to full audit history and powerful reporting tools
  • Transparent and ethical processes

FREQUENTLY ASKED QUESTIONS ABOUT DEBT SOLUTIONS

Does Addendum Funding Solutions provide the funding?

No, Addendum acts as a Platform provider. The Platform provides a secure online environment where
Corporates and Funders can express a need for funding, negotiate pricing, finalise terms and, ultimately, enter into a new bilateral debt agreement.

Who are the funders on the Platform?
Funders comprise a mix of life insurers, banks, and institutional asset managers.
Do the funders on your Platform provide funding to individuals as well?

Not on our Platform. On our Platform, they focus on funding for medium to large listed and unlisted corporates.

Do you arrange funding for start-ups?

No. Our funders are only looking to fund established businesses through the Platform.

What is the minimum funding a corporate can raise on the Platform?
There may be exceptions for existing clients, but normally not less than R50million for a first-time fundraise.
What tenor of funding does the Platform facilitate?

The funders on the Platform have varying interests across a range of tenors. 

Is there any documentation the funders require in order to provide funding?

These requirements are decided on a case-by-case basis and our team will guide you through this during the onboarding process.

How quickly can funding be arranged?

This depends on your corporate profile, credit risk and onboarding process. For large, listed corporates, this can be as short as a week or two, but on average, a corporate should allow for 4-6 weeks for a first fundraise through the Platform.

How can I gain access to the Platform?
Simply send through an enquiry on the website and we will contact you with the next steps.
What will it cost to gain access to the Platform?

Access to the Platform is free for all users. Corporate users pay a raising fee on each successful fundraise.

How does your Platform make the debt raising process efficient?

The Platform connects a corporate with multiple funders at the same time, in so doing the corporate is exposed to a broad network of alternative funding sources without having to duplicate their efforts.

How secure is the settlement process?

All debt instruments concluded on the Platform are settled through Strate, which is South Africa’s Central Securities Depository (CSD). This is the same secure infrastructure used to settle the billions in Rand of transactions occurring through the South African exchanges (like the JSE) on a daily basis.

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About Addendum

Addendum provides Supply Chain Finance and Funding Solutions to companies and funders in Africa. Our fintech solutions are capable of unlocking capital and funding for businesses of all sizes. We have designed real-time, online solutions that make markets transparent and products simple and seamless to execute.

Where others saw a barricaded, antiquated machine, we saw possibility. With transparency, convenience and choice as founding principles, Addendum puts you in charge. We believe that a small change to your business strategy – an addendum – can open a world of potential for your business.

Please contact us for more information about how we can unlock value for your business.