Norsad Capital, formally Norsad Finance, has received capital from an Africa-based development finance institution.
African Development Bank (AfDB) has injected $30 million worth of debt into Norsad Capital, with the funds going directly into the investment firm.
Norsad rebranded earlier in 2022 to reflect its new strategy of backing more sustainable infrastructure and impact-focused deals across Sub-Saharan Africa.
The investor will use the new capital for capacity expansion as it works to back small-cap deals across the Southern Africa. Norsad is working towards extending the lending tenor on its debt investments.
Stefan Nalletamby, director of financial sector development at AfDB worked on the deal.
Previous investors in Norsad include European Investment Bank (EIB) which injected approximately $10.5 million (€10 million) worth of debt into the company earlier in 2022.
Headquartered in Gaborone, Norsad is an investment company, targeting small cap debt deals across the Southern Africa.
Norsad invests between $5 million and $10 million. The investor has backed over 150 companies, investing over $450 million since inception.
The asset manager was set up in 2011 by four development financiers – Investeringsfonden for Udviklingslande (IFU), Finnfund, Norfund and Swedfund.
The DFIs were joined by 11 Southern Africa development financiers, on a strategy to boost foreign currency debt investments in the region.
The regional DFIs include Banco de Desenvolvimento de Angola, the Citizen Entrepreneurial Development Agency (CEDA) of Botswana, Lesotho Postbank, Export Development Fund of Malawi, and the State Investment Corporation of Mauritius.
Instituto de Gestão das Participações do Estado (IGEPE) of Mozambique, the Development Bank of Namibia, and the National Industrial Development Corporation of Swaziland are also shareholders of Norsad.
Other institutions include the Tanzania Investment Bank, the Development Bank of Zambia, and the Infrastructure Development Bank of Zimbabwe.
Created in 2011, Norsad is headed by chief executive officer Kenny Nwosu and employs approximately 37 people as of 2022.
Nathaniel Nyika is chief investment officer at Norsad.