If you have a share portfolio of R20 million or more and require at least R10 million to purchase listed shares, preference share funding is ideal for you. It allows you to diversify or gear up your investment portfolio by providing your company with funding to acquire listed shares, at preferential non-compounding rates lower than a rate offered on a loan. Your existing portfolio together with the newly acquired shares may serve as security for the funding.
Through preference share funding, you'll benefit from favourable rates below Prime, additional cash flow and an increased investment portfolio.
The facility size is determined by the market value, diversity and debt serviceability of your portfolio, together with your credit profile. The funding amount is largely dependent on the diversity of your portfolio.