Call for Applications: Investment Pipeline for Growth-Stage Zambian Businesses

PRS 365 is partnering with an impact investor to build an investment pipeline of high-growth,

investment-ready businesses in Zambia. If your business meets the criteria below, we invite you to apply for consideration.

Who should apply?

Businesses that meet at least two of the following three criteria:

• Total assets of US$1 million to US$15 million (or Zambian Kwacha equivalent)

• Revenues of US$1 million to US$15 million (or Zambian Kwacha equivalent)

• 21 to 300 employees

Additional eligibility requirements

Operations and structure:

• Registered as a Limited Liability Company

• Operating for at least 3 years

• At least 50% of operations and/or management based in Zambia

• A diversified customer base, without reliance on a single customer

Financial health:

• Generates cash flow sufficient to support debt service, with a debt service coverage ratio of at least 1.25x

• EBITDA positive, with debt to EBITDA of no more than 3.5x

Sectors:

• Open to businesses in most sectors

• Excludes primary mining, fossil fuel activities (other than LPG), private K-12 education services, general hospitals, and sectors on standard exclusion lists

Financing characteristics

• Ticket size: US$1 million to US$5 million (or Zambian Kwacha equivalent)

• Tenor: 3 to 7 years (exceptionally up to 10 years)

• Grace period: up to 12 months on interest and principal

• Collateral cover: up to 70% on a portfolio basis

• Use of funds: growth capital (up to 50% may be used for refinancing)

• Priority given to businesses that will create new jobs

How to apply

Interested businesses should submit a cover letter together with the following supporting information:

• Financial statements for the last 3 years (most recent year audited, or willingness to be audited)

• Governance structure and organogram

• Details of existing debt, including debt schedule, collateral, and facility letters

• Regulatory licenses, including evidence of tax compliance

• Shareholding and beneficial ownership details

• Board composition, with brief qualifications and experience

• PACRA registration documents

• Management structure and brief profiles of key management (qualifications and experience)

• Company overview (1-2 pages), including products, pricing, clients, branches, staff, and business vision/strategy

• Key contracts with clients, in Zambia or abroad

• Financial projections, including underlying assumptions

• Proposed collateral and valuation reports

• Market analysis, including market share and size, demand, key buyers and suppliers, competition, regulation, and risks

Applications should be sent to prsadmin@prs.org.zm, the applications will be reviewed on a rolling basis

For any questions about this call, please email prsadmin@prs.org.zm

PRS 365 Limited

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Call for Applications: Investment Pipeline for Growth-Stage Zambian Businesses