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Funding Solutions Update – Q4 2020 Edition

Jan 18, 2021 | Funding Solutions, News

As we move swiftly into 2021, we thought we’d take a brief moment to recap all that happened in 2020 before sharing our excitement about the year that lies ahead. 2020 started with strong momentum and new clients joining our Funding Solutions Platform. We also placed our longest dated debt instrument – with a 5-year term – through the Platform in January, however, no one could have predicted what was to come. Debt Capital Markets all but came to a complete stop in Q2. As you all had to endure, South Africa faced some of the strictest lockdown conditions in the world during the course of the year. Consequently, traditional debt roadshows were not possible, but corporate fundraising (for essential services specifically) became more important than ever. As the market came back online, our platform helped our clients (many of whom offer essential services) raise over ZAR4bn in debt funding from the safety of their own homes. With the funding raised through our platform, these businesses could keep their shelves stocked and acquire essential PPE.

The year ahead… Consider it possible

As you would have seen by now, we have refreshed the Addendum brand to reflect our philosophies and our way of thinking. We encourage you to read our brand announcement here.

We are also launching two exciting new platforms in 2021! The first is a significant upgrade to our marketplace. The current marketplace helps our funders buy and sell instruments acquired through the debt platform. The tool connects our network of funders directly with one another and helps them receive expressions of interest in any of these debt instruments they may wish to transfer out of their portfolios. This is also not a committed request and the seller always retains the right to retain their instrument if the price they are after is not offered. Improving transferability of all assets and overall liquidity in the debt market has been a key driver behind why we do what we do from day 1. We are thus very excited to be adding functionality to the marketplace that will give our users the opportunity to upload listed debt instruments onto the platform to request offers from the market in the same innovative way. You will soon be able to upload the salient details of an instrument to the platform, post this on the marketplace and then select a potential acquirer from all respondents. Settlement and reporting then takes place through a JSE member at a very competitive rate to what you might usually pay for similar services in the market.  This feature will be coming out later this quarter.

The second new platform is a tool to make REPO trading more accessible and cost-effective as a fund-raising tool in the market. It is designed for any large corporate or financial institution with a current or future need to enter into bilateral REPOs. You are able to easily import your existing relationships or electronically sign new GMRA Annexures with counterparties you might meet for the first time through the platform. It brings the market closer together and reduces the cost and time required to carry out REPO trading. If you are in the REPO space and have yet to see a demo of this platform, please let us know and we will gladly arrange this for you. Based on the initial feedback we’ve received, this one is going to be a game-changer – so keep a lookout for the launch in Q2.

If you are an institutional funder and are not yet being notified of new corporate issuer requests for funding directly from the Platform, then please ask us for your free access by clicking here.

If you would like to keep up to date with all our newest issuers, updates and platform releases don’t forget to follow us on LinkedIn here www.linkedin.com/showcase/funding-solutions 

Regards,
Ian Norden
Director, Addendum Funding Solutions

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