Norsad Finance is a provider of flexible and customized long-term financing to mid-market companies and financial services providers in Southern Africa. Norsad has a capital base of over USD 130 million and prioritizes investments to financially sustainable companies that also deliver substantive positive social and environmental impact.
Norsad Finance was incorporated in Botswana in 2011 and is IFSC accredited; however, we have a history spanning over 25 years. We first started operating in 1990 as a multilateral agency based in Lusaka. The establishment of Norsad followed an agreement between four Nordic countries (Denmark, Finland, Norway and Sweden) and 11 Southern African countries (Angola, Botswana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Swaziland, Tanzania, Zambia and Zimbabwe) to establish an organization that can contribute to the economic development of Southern Africa by extending foreign currency facilities for the operations of private sector businesses.
Following the evolvement of Norsad to a limited liability company, we incorporated more customized and flexible debt and mezzanine funding structures to businesses in the Southern African region.
“To be the premier provider of customized longer-term risk capital to Southern African companies and financial services providers that are financially, socially and environmentally sustainable.”
“To be acknowledged as a preferred impact investor providing flexible and customized financing solutions.”
Integrity - We do what we say and uphold high standards of fairness and ethical behaviour.
Respect - Respect and treat others equally.
Transparency - Openness in our communication and actions.
Accountability - The willingness to take responsibility for our actions.
Learning - Continuous improvement in ourselves and our work.
Partnership - We continuously seek to be a more agile and responsive partner to our stakeholders.
Norsad is a regional pure-play private credit firm offering medium-to-long term risk capital in the form of bespoke debt and mezzanine financing to mid-market companies in Southern Africa (SADC region). We are sector agnostic and target investments of USD 5 million to USD 10 million and seek alignment with our investee partners through the sharing of risk and upside. Our facility tenures are determined on a case-by-case basis, but typically range from 3 to 7 years. We also get into partnerships with other financial institutions and investors by providing complementary financing that allows them to stay within their core lending mandates and investment policy while unlocking potential future lending capacity for their clients and positively impacting blended returns.
Mezzanine Finance is a hybrid form of financing, typically a layer in-between senior debt and equity finance in the capital structure of a company and can have features of both debt and equity. Private credit providessuitable complementary financing options for growth companies operating in our region with mezzanine and bespoke debt structured to suit the individual cashflows of the business. Some of the common structures available at Norsad include
- Income participating instruments
- Debt with warrants, preferred or co-equity
- Subordinated debt instruments
Credit and Tier II Facilities
These are typically loans and subordinated facilities to financial services providers.
Senior Debt to mid-market companies
These include secured and unsecured senior loans with a lien on specific or general assets of the company.
Consideration for our facilities include
- Strong commercial viability
- EBITDA in excess of USD 1.5 million
- Capable management team
- Good corporate governance structures
- Accountability and transparency - audited financial statements
- Compliance with statutory requirements
- Commitment to high social and environmental sustainability standards
- Positive socio-economic development in community