Funding moveable assets – Metsimahole Local Municipality
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INCA project team:
Johan van Huyssteen – Portfolio Manager
Koos Heymans – Portfolio Manager
Myra Netshituni – Credit Analyst |
Metsimahole is a medium-sized municipality with an annual operational budget of R316,6 million (2006/07). Sasolburg is the major town in the municipality, which includes the villages of Deneysville, Oranjeville, Viljoensdrif and Vaalpark. The estimated population is 115 954. Sasolburg has a major chemicals plant (Sasol) in its area of jurisdiction as well as many other related industries, making it highly industrialised. As part of INCA’s moveable asset funding facility, the municipality purchased five Nissan Trucks (Tippers) for R4 million, and the balance(R1 million) will be utilised to build a rates hall in Sondela and to erect ablution facilities for waste removal personnel.
Financial snapshot
Loan value: R5 million.
Term: 4-year unsecured loan.
Interest rate: 11,00%.
Repayment: Capital and interest monthly. |
