INVESTMENT GUIDELINES

  • SEF provides equity financing to small and medium companies in Mauritius.

  • Investment range of SEF: minimum Rs 500,000 to a maximum of Rs 25,000,000. SEF financing should represent up to 49% of the SME’s equity capital. Hence, promoters should invest at least 51% in share capital.

  • SEF investment is primarily towards capital expenditure.

  • All productive sectors are eligible for financing.

  • SEF invests in start-ups, expansion projects and new lines of business.

  • Only viable and feasible projects are considered.

  • Collateral may be required in some cases.

  • The majority of shareholding to be held by Mauritian national, ordinarily resident in Mauritius.

  • Depending on amount invested by SEF, a minimum of 1 director may be appointed on Board of the Investee Company.

The type of financial instrument considered are Ordinary Shares, Preference Shares and Debenture. The issue of the type of instrument is decided on a case to case basis

Reedeemable Preference Shares

  1. Cumulative interest of 8% p.a (expected IRR: 8%) similar to the current price which considered.
  2. Debentures may be considered in the following specific cases:
    1. High risk project
    2. Strong asset based
    3. Non-company business entities can be considered e.g cooperative societies.

Ordinary Shares

Main terms and Conditions :

  1. Entry and Exit prices are determined by independent valuer and may be negotiated with the promoter.
  2. SEF will consider an investment through ordinary shares in the following cases:
    1. Investment above Rs 3 M
    2. Existing, well established and sound fundamentals and outlook
  3. Minimum of 1 Director will be appointed by the Board on the investee company
  4. The expected IRR for the project is expected to between 10% to 18% depending on risk level.
  5. The period of investment by SEF will be up to a maximum of 10 years.