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WHO WE ARE
Vision, Mission and Values
Board of Directors
Externally Managed Funds
Fund of Funds
INVESTMENT PHILOSOPHY AND APPROACH
Risk and Compliance
Environmental, Social & Governance
Research & Insights
APPLY FOR FUNDING
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[column 12 layout="default" class="text" padding-mobile="true" margin-mobile="true"]Isibaya Fund (Isibaya), a division of the Public Investment Corporation (PIC) invests in commercially viable African projects that have a strong, positive developmental impact and transformation. Isibaya aims to provide finance for projects that support and promote long-term economic, social and environmental growth objectives and practices, whilst delivering positive returns for PIC clients.
Isibaya Fund seeks to pursue and contribute to the transformation and development of the economic landscape of the country in a socially responsible manner through investment in these focus areas:
Impact Investing; and
Our clients and business partners
Isibaya Fund provides finance to private sector and public sector organisations that require funding for direct implementation of projects or to intermediaries (such as fund managers). Also, it may co-invest with other institutions having a similar objective of earning satisfactory financial returns and having a strong developmental impact.
The PIC is a signatory to the United Nations Principles of Responsible Investment and the United Nations Global Compact and therefore embeds the principles of sound governance, environmental and social practices in its investment processes. The PIC supports Broad-Based Black Economic Empowerment (BBBEE) and seeks to implement, where appropriate, the BBBEE Codes of Good Practice issued by the Department of Trade and Industry.
Investment decision guiding principles
All investment decisions are guided by the following broad principles:
Investments must be made in projects which are able to provide positive sustainable long-term returns; and
Contributing to and support positive, long-term economic, social and environmental outcomes for South Africa and the Rest of the African Continent such as making South Africa more competitive economically, reducing social backlog, greening the economy, creating jobs and supporting transformation.
Principle of impartiality;
Principle of diversification;
Principle of transparency; and
Principle of Environmental, Social and Governance discipline (ESG);
Broad financing instruments and terms
Isibaya Fund may provide financing in the form of equity, mezzanine and senior debt. The type of funding will depend on the individual circumstances of each project. Where appropriate, Isibaya Fund may co-invest alongside other financial institutions. The nature and extent of a partnership will vary according to the individual circumstances of each project. The term of funding is usually not less than five years and will be influenced by the nature of the transaction funded and its projected cash flows.
Broad investment criteria and decision framework
In assessing all the projects the following key broad tests are considered:
Financial viability test;
Development impact test including ESG assessment;
Potential to provide a return which meets minimum benchmarks prescribed by the client;
Funding will be commercially priced;
Projects should preferably be in sectors that largely absorb unskilled and semi-skilled labour;
Security will include company or project assets and/or security by sponsors;
In addition to adequate security, project or company cash flows must be robust;
The project must endeavor to promote BBBEE through employment equity and preferential procurement;
BEE transactions should improve the productive capacity of the enterprise, create new productive capacity or redistribute economic benefits to a broad base of beneficiaries.
Below are the sectors which the PIC, through its unlisted investment division, invests clients funds in line with the client's mandates:
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To invest in large scale and long-term infrastructure projects that achieve good capital returns while also acting as a catalyst to unlock economic potential and to attract foreign direct investment.
ICT and Broadband infrastructure
To invest in projects that offer solutions for sustainable and diverse energy sources and reduces any adverse environmental impact while delivering a real economic return.
Priority Sector and Social Infrastructure
To invest in projects that contribute to the growth of the economy through job creation, skills transfer, poverty alleviation and rural development.
Business process outsourcing
Motor vehicle components and accessories
Chemical, plastics and pharmaceuticals
Pulp, paper and furniture
Small Medium Enterprises
The purpose is to invest in and support Small and Medium Enterprises in a manner which will yield satisfactory financial returns for the investors while contributing positively to the economy particularly in terms of entrepreneurship, new enterprise development and job creation.
Across all sectors
To generate income and capital appreciation by making investments across all sizes of entities: early-stage venture capital, small, medium and large-sized unlisted companies located in South Africa and the Rest of the African Continent.
Across all sectors
NB: PIC does not invest in the following sectors:
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[column 12]For more information on Isibaya Fund and to apply for funding please click on the button below.
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