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Municipalities

City of Johannesburg Bond Redemption Fund (Department of Treasury)  (January 2006-to current)

Regiments Capital designed a unique asset management solution to provide efficient redemption of all listed debt of COJ in compliance with the terms of the MFMA. Management of R5.7 billion (COJ01, COJ02, COJ03, COJ04, COJ05 and new retail bond) sinking fund on behalf of COJ in line with the unique asset management solution. Regiments reports on the fund’s performance on a quarterly basis to the COJ senior treasury management and semi-annually to the Asset and Liability Committee (ALCO).

Advisors to the COJ on the Feasibility of Establishing a Community Bank (Department of Economic Development)  (November 2007-May 2008)

 Regiments Capital advised the COJ on the feasibility of establishing a Micro-Finance Institution (MFI) or Community Bank premised on the City’s mandate to stimulate and develop economic growth. The mandate involved advising the COJ on legislative Municipal compliance, developing a model that optimised best international practice with regards to credit, operational and financial models. The proposed model was approved by the Mayoral committee and Council in May 2008 and the COJ will implement it in financial year 2008/09.

Analysis of Asset portfolio, Balance Sheet Restructuring and Treasury Review (September 2006 – February 2007)

Regiments Capital analysed the asset portfolio for the COJ and realized that R650m from financial asset sales, were financial assets that were previously under performing.

Regiments performed a treasury review in 2007 which involved reviewing the COJ treasury policies, procedures and processes in line with the MFMA and National Treasury regulations.

City of Joburg - Funding Facilitator for COJ (June 2009)

In 2009 COJ appointed Regiments Capital as its funding facilitator to identify, measure, manage and report on financial risks within the approved cash management framework. Regiments Capital key objective was to ensure that the cash resources of  the City were utilised optimally and assist in the adequate planning of funding or investment decisions.

City of Joburg – Community Bank Project (June 2009)

In 2009, COJ appointed Regiments Capital to assist in establishing an economically and financially viable entity that would assist the City’s emerging micro-entrepreneurs to have access to credit and financial services. Regiments Capital’s involvement was based on  a two-phased approach, namely: implementation advisor role and managing the implementation process of the NGO; as well as monitoring the economic impact of the micro finance institution.

City of Tshwane September 2008 – October 2008

Regiments Capital was mandated to conduct a Mid-Term Performance review of the City of Tshwane. Our key objective was to gauge whether the initial set of goals and targets were achieved, and to assess the City’s achievements and opportunities to ensure effectiveness and efficiency in the second term whilst ensuring that the strategic objectives of the City are met and delivered.

City of Tshwane – Treasury Review (July 2009)

In 2009, the COT appointed Regiments Capital to assist COT treasury in reviewing and advising on a treasury model for the treasury. The COT treasury is primarily a group risk management and execution service provider, which in the course of its duties services a number of divisions of COT. Regiments Capital is currently making recommendations based on the review. Key risks are being identified, quantified and action plans recommended.

City of Tshwane – Treasury Review (July 2009)

Preparing the long term sustainability and funding strategy to address the immediate, short term and long term funding requirements of the City of Tshwane as well as ensuring financial sustainability of the Municipality. The proposed solution addresses the current liquidity challenges of the City of Tshwane as well as to ensure that the City is better placed to deal with unfavourable economic conditions in the future.  

Public Sector

Eskom –  Capital raising and issuance of a 500 million Euro bond  (October 2005 – February 2006)

In October 2005, Eskom  appointed Regiments Capital as joint lead managers together with Calyon and J.P. Morgan for the capital raising and issuance of a 500 million Euro bond.  

Airports Company South Africa – Capital Raising Program (2006 - 2007)

In 2006, Regiments Capital was appointed by Airports Company South Africa (ACSA) as advisors in their capital restructuring program. A review on SAA’s 5 year R21 billion capex and opex programs was then carried out. Appropriate financially modeled balance sheet trigger and target ratio’s based on comparative airport analysis were developed together with a 5 year funding plan including spread of financial instruments.

Regiments designed, ran and managed of RFP processes for appointment of   a ratings adviser and debt lead managers for SAA and assisted with the registration of R12 billion Domestic Medium Term Note (DMTN) borrowing program (including obtaining shareholder (NDOT) and National Treasury approvals);advised on the setup of a bond redemption fund; and successfully managed the inaugural ACSA R2 billion 12 year bond issues in March 2007.

ACSA – Re-appointment of Regiments Capital in March 2008

Review and update ACSA’s Capital Expenditure Programme; requiring the preparation of an optimal funding plan through the modelling of all expected cash flows. Our mandate included assisting in the structure, pricing, placement and redemption planning of debt raised in fulfilment of ACSA’s capital expenditure plan. We then reviewed ACSA’s current financial risk management framework and executed the funding plan.

Our advisory services made recommendations for ACSA’s revised financial risk management framework and placed key human resources at ACSA for the establishment of an optimal treasury, financial risk management and cash management solution. Regiments Capital then updated and reviewed  ACSA’s 5 year R 22 billion funding plan and advised on the issuance of two of  its bonds (AIR02 and AIRL01) collectively valued at R1.151 Billion.

Regiments assisted ACSA on the drafting, adjudication and appointment of ACSA’s panel of advisors on the DMTN. In order to assist ACSA with the achievement of the proposed funding plan, Regiments Capital negotiated R9 billion worth of committed general banking facilities with various local financial institutions having conducted a hybrid feasibility study; originating, structuring and advising on the pricing and quantum for a R1.75bn term loan as well as R5 billion Development Finance Institutions funding; and ECA Funding.

Denel (2008)

Financial Risk Management Framework and Treasury Policy and Strategy

Denel appointed Regiments Capital  to identify, assess and measure the company’s exposure to foreign exchange risk since a substantial portion of Denel’s costs are incurred in Euro or US dollars. A financial analysis of Denel’s capital structure was performed  together with a Rand/Euro market evaluation.  Regiments developed a comprehensive strategy to protect Denel against foreign exchange risk advising on the percentage of exposure to hedge, what instruments to use and how often the strategy needed to be measured and reported.

TRANSNET (January 2005 – June 2006)

Regiments Capital was mandated by the largest state owned enterprise (“SOE”) in South Africa to develop a financial risk management framework (“FRMF”) that enabled the group to successfully embark on a significant corporate restructuring exercise.  The Regiments Capital’s approach, unlike those of other advisory firms, was a solution driven approach and custom designed to meet the critical needs of any client.  The SOE therefore played an integral role in developing the design of the solution and, most importantly, Regiments Capital made available its diverse exposure to various first world treasury systems for the benefit of the SOE.  

The mandate also entailed designing a template for the restructuring of the SOE’s entire group treasury division to a world-class treasury in order to tackle the challenges of a rapidly transforming environment.  Regiments Capital was actively involved in the implementation of the solution.

South African Airways Development of an Enterprise Risk Management Framework (ERMF) (July 2005 – January 2006)

Regiments Capital was mandated by SAA to develop an enterprise wide risk management framework (“ERMF”) which mirrored the FRMF to ensure optimal decision making processes across the organisation. The scope of the project ensured that the ERMF process was aligned with the FRMF and the overall strategic objectives as defined in the overall restructuring program of the group.

Sovereign Foods – Analysis of the Capex Plan and development of the Funding Plan (February 2008 – April 2008)

In February 2008, Sovereign Foods appointed Regiments Capital to perform an analysis of the capex plan and develop a funding plan. Sovereign Foods then engaged Regiments Capital to become the capital raising agent pursuant of the funding plan

Banks

Nedbank - Assisted with the development of an Econometric Credit Risk Model (September 2008 – December 2008)

Nedbank appointed Regiments Capital to assist with the development of an econometric credit risk model. The scope of the work consisted of:

• Single Factor Analysis,

• Multi-Factor Analysis,

• Default Prediction,

• Development of the portfolio indices,

• Development of the master index,

• A Nedbank-specific forecast of asset-class and aggregated default rates,

• Regression analysis related to the various portfolios, and

• Back testing of the estimated variables

United Bank for Africa (UBA) – Assisted with Implementation of a Top-Down Pillar II Capital Impact Assessment with Respect to Basel II Regulatory Capital (August 2008 – January 2009)

Regiments Capital assisted the United Bank for Africa Plc (“UBA”) with the implementation of a top-down Pillar II capital impact assessment with respect to Basel II regulatory capital.

UBA which is the largest financial services institution in West Africa with a balance sheet size in excess of one trillion Naira and more than six million customer accounts engaged Regiments to assist with meeting both its regulatory and internal risk capital demands.

Development Bank of Africa (DBSA) –  Assisted with the implementation of a Project Finance Risk Rating Tool (October 2008 – February 2009)

Regiments Capital assisted the Development Bank of South Africa (“DBSA”) with the implementation of a Project Finance Risk Rating Tool.

The objective of the planned project was to build a rating model for the project finance portfolios, using a cash flow projection and simulation approach while:

· Prioritizing simplicity and flexibility over complexity and avoiding a ‘black box’ approach

· Tailoring the model to particularities of South African project finance deals (and more generally deals within the SADC region), including special attention to the multinational nature of transactions, and country-related risks including government support and legal systems

· Including standardized cash flow projection models to enhance consistency of credit analysis

· Enabling sensitivity and scenario analysis

· Offering the capability to link into monitoring/early warning processes, in particular the ability to re-rate projects already existing in DBSA’s portfolio.

Development Bank of South Africa (DBSA) – Performed an independent valuation of the assets, used as collateral against its credit exposures (March 2009 – Current)

Regiments Capital was appointed by DBSA to perform an independent valuation of all the collateral held by the bank. The scope of the work included:

· Providing an updated, complete and accurate collateral register of all the collateral currently held by DBSA. The register included both collateral from performing and non-performing loans.

· Establishing a robust and logical approach to value the collateral

· Valuating the assets held as collateral

Provincial Government Credentials

Strategic, operational and financial review of the Gauteng Department of Health’s Folateng Project.  (February 2008 – June 2008)

The mandate of this project has been in advising the Gauteng Provincial Department of Health on the roll out of Folateng Health services with a scope of extending from the organisation to the mapping out of the delivery of the project.

Regiment Capital’s approach was to advise on the efficiency of the Departments’ current approaches to service delivery. Regiments Capital also provided an analysis of how the department could optimise its service provision from all critical perspectives including strategy; operations and budgets

Regiments Capital also assisted in the determination and analysis of alternate service delivery mechanisms.

Newsroom > Achievements