London, August 2018
TLG Capital announced today it is providing Metafoam Limited, Rwanda, with growth capital through its Credit Opportunities Fund. In keeping with TLG’s theme of investing in growing companies in Africa with strong downside protection, the investment is backed by a guarantee issued by Equity Bank Rwanda and confirmed by Equity Bank Kenya. Metafoam is a key Rwandan mattress player manufacturing for the low to middle income sector and fits in with TLG’s mandate to invest in viable businesses with a positive social impact. With this investment, TLG Capital bolsters support to Presidents Paul Kagame’s strategy of ‘Made in Rwanda’, aimed at making Rwanda an upper middle-income country by 2035. Nisk Capital was the advisor on the transaction.
TLG will leverage this partnership with Equity Bank to establish a pipeline of investment opportunities in Rwanda and broadly across East Africa.
Metafoam Limited currently manufactures over two hundred thousand mattresses a year and with TLG Capital’s investment, the business will increase production capacity, to meet the growing demand within country and across the East African region.
Equity Bank’s commitment to be a ‘listening and caring’ partner for SMEs in the region is demonstrated with this transaction; the bank’s vision is to be the champion of socio-economic prosperity for the people of Africa. It offers inclusive, customer focused financial services that socially and economically empower our clients and stakeholders. “We have chosen to support businesses in the region, through partnership. We at Equity Bank, consider conclusion of this transaction as proof. We are confident that together we will deliver even better results for our customers across our markets serving as a catalyst for wealth creation, strong risk and strategic business management best practices.” said Hannington Namara, The Managing Director, Equity Bank Rwanda.
Saad Sheikh, Principal private investments at TLG Capital said: “We are delighted to close our first deal in Rwanda, focusing on the growing middle class, with one of the largest banks in East Africa. Metafoam aspires to be the market leader in mattress manufacturing across the East African region and TLG is excited to be contributing to that success. We have found a great partner in Equity Bank and NISK Capital and will continue to provide the much-needed capital to entrepreneurs, not only in Rwanda but in the wider East African region.”
Irene Ndikumwenayo, Managing Partner of NISK Capital who was instrumental in closing this deal said: “Businesses like Metafoam are why we do what we do. We believe that with the right partners, such opportunities can truly realize their potential and contribute to the broader economic development within East Africa. We are delighted to have created this partnership between TLG, Equity Bank and Metafoam. TLG’s strong reputation and unwavering commitment to Metafoam should lead to significant growth within Rwanda and beyond.”
