She­fer fa­cil­i­ta­tion pay­ment re­duced to 1,3 per­cent

Chronicle (Zimbabwe) - - National News - Harare Bureau

SOUTH African busi­ness­man Mr Niko She­fer, who fa­cil­i­tated the $206 mil­lion deal for Zi­nara to re­fur­bish the PlumtreeMutare High­way, yes­ter­day said he has rene­go­ti­ated his fa­cil­i­ta­tion fee from two to 1,3 per­cent.

His of­fice in South Africa also clar­i­fied the role it played for Zi­nara to ac­cess the loan dur­ing try­ing times for Zim­babwe.

“Mr She­fer was in­stru­men­tal in se­cur­ing the op­por­tu­nity for Zi­nara to de­velop the Plumtree -Mutare High­way at a time when the debt fund­ing of this mag­ni­tude was at best chal­leng­ing to se­cure for projects of this na­ture for Zim­babwe,” said an of­fi­cial from his of­fice.

“The loans, fees and in­sur­ances se­cured by Mr She­fer for this spe­cific project amounted to $225 000 000.

“In trans­ac­tions of this na­ture, par­tic­u­larly in the try­ing eco­nomic cli­mate fac­ing the world mar­kets at the time, as well as the il­le­gal sanc­tions im­posed on Zim­babwe by Western fi­nan­cial in­sti­tu­tions, suc­cess fees of 7,5 per­cent and 10 per­cent of the to­tal cap­i­tal amount raised are con­sid­ered rea­son­able and payable in one lump sum upfront.

“Mr She­fer was re­quested by the man­age­ment of Zi­nara at the time to de­fer the set­tle­ment of the agreed upon suc­cess fees over the ten­ure of the loan that is 10 years, which com­mer­cially and over the nor­mal course of any busi­ness would ob­li­gate Mr She­fer to as­sume the set­tle­ment risk over the phased life of the project.

“It was agreed, there­fore that con­sid­er­ing there is an in­ter­est cost to such a de­fer­ment as well as a risk com­po­nent, that Mr She­fer would be en­ti­tled to a set­tle­ment amount­ing to two per­cent per an­num of the to­tal cap­i­tal debt for the ten­ure of the loan.

“Due to the dif­fi­cult eco­nomic sit­u­a­tion in Zim­babwe, the CEO of Zi­nara re­quested his staff to ne­go­ti­ate a fur­ther al­le­vi­a­tion of this obli­ga­tion with Mr She­fer and he agreed to re­duce the per­cent­age to 1,3 per­cent per an­num for the pe­riod out­stand­ing on the ten­ure of the loan.”

Con­fir­ma­tion was also ob­tained by this pa­per that the set­tle­ments made to FNB were not to any of Mr She­fer’s ac­counts but In­fralink’s own Debt Re­serve ac­counts.

The of­fi­cial fur­ther stated that the money that Zi­nara de­posited in the FNB ac­count in South Africa was for In­fralink’s debt re­serve ac­counts and op­er­a­tional ac­counts for the pur­pose of set­tling their debt obli­ga­tions to the DBSA.

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