Independent, conflict-free debt capital raising advisory for corporates, growth businesses, and project sponsors across South Africa and international markets.
Debt Capital Raising Services
Structuring the Right Debt to Fund Your Next Chapter
Whether you are funding an acquisition, refinancing existing obligations, financing a capital project, or optimising your balance sheet, the right debt structure can be the difference between sustainable growth and unnecessary cost.
Merchantec Capital’s Debt Capital Raising team provides end-to-end advisory and execution services across the full spectrum of debt instruments. As one of South Africa’s largest independent corporate finance advisory firms, we operate without affiliation to any bank, audit firm, or financial services provider — ensuring our advice is objective and aligned solely with your interests.
With over two decades of transactional experience across both debt and equity capital markets, and a network spanning local and international investors through our Alliance of International Corporate Finance Advisors (AICA) partnership, we connect businesses with the most suitable capital providers at the best available terms.
Debt Instruments We Raise
We advise on and arrange the full range of debt capital solutions, tailored to your business profile, cash flow dynamics, and strategic objectives.
| Instrument | Description |
|---|---|
| Senior Secured Debt | Term loans and revolving credit facilities backed by collateral, offering the lowest cost of capital. Suitable for established businesses with tangible asset bases. |
| Senior Unsecured Debt | Debt obligations not secured against specific assets, relying on the borrower’s creditworthiness and cash flow generation capacity. |
| Subordinated / Junior Debt | Ranked below senior obligations in repayment priority, providing additional leverage beyond senior debt limits at a higher cost. |
| Mezzanine Financing | Hybrid instruments combining debt and equity features, including subordinated notes with warrants or conversion rights. Fills the gap between senior debt capacity and equity. |
| Project Finance Debt | Ring-fenced, non-recourse or limited-recourse structures for capital-intensive projects in sectors such as renewable energy, infrastructure, and real estate. |
| Corporate Bonds | Publicly or privately placed fixed-income instruments for larger capital requirements, often listed on debt exchanges. |
| Commercial Paper | Short-term unsecured promissory notes for working capital and treasury management purposes. |
| Private Placements | Debt securities placed directly with institutional investors such as pension funds, insurers, and DFIs — offering flexibility on tenor, amortisation, and covenants. |
| BEE Funding Structures | Structuring and arranging debt to facilitate Black Economic Empowerment transactions, vendor financing, and preference share structures. |
| Acquisition Financing | Tailored debt packages to fund M&A activity, leveraged buyouts, management buyouts, and management buy-ins. |
| Refinancing & Restructuring | Optimising existing debt by renegotiating terms, consolidating facilities, or replacing high-cost obligations with more efficient structures. |
When to Consider Debt Capital Raising
Debt capital raising is appropriate at various stages of the business lifecycle. Common scenarios where our clients engage us include:
Growth & Expansion
Funding organic growth initiatives, new market entry, or capacity expansion without diluting equity.
Project Finance
Ring-fenced debt for infrastructure, renewable energy, and real estate development projects.
Working Capital
Short-term facilities to support operational liquidity and manage cash flow cycles.
Acquisitions & Buyouts
Structuring acquisition finance for M&A transactions, leveraged buyouts, and management buyouts.
Refinancing & Optimisation
Replacing existing high-cost debt, consolidating facilities, or restructuring capital to reduce weighted average cost.
BEE Transactions
Debt structures that facilitate empowerment transactions, including vendor-financed and preference share arrangements.
Why Merchantec Capital
Choosing an independent debt advisor ensures your capital raising process is managed with objectivity, market intelligence, and your interests at the centre.
Independence & Objectivity
We are not affiliated with any bank, audit firm, or financial services provider. This means our advice is conflict-free, and every lender in our process is evaluated purely on merit — the terms they offer your business, not a relationship we need to protect.
Specialist Debt Expertise
Our capital raising team has deep transactional experience across both debt and equity markets. We understand how lenders assess risk, structure covenants, and price facilities — and we use that knowledge to position your business for the best outcome.
Extensive Lender Network
We maintain relationships with a broad range of capital providers including commercial banks, development finance institutions, private credit funds, mezzanine lenders, institutional investors, and alternative private lenders — both locally and internationally through our AICA partnership spanning 39 countries across 6 continents.
Competitive Process Design
Our marketing process is built to create urgency and competition among lenders. This removes parties who lack the resources or intent to fund your transaction, while generating multiple term sheet options varying in price, structure, and covenants — giving you the leverage to negotiate from a position of strength.
Project Management & Focus
Taking a business through a capital raising process is a significant undertaking. We manage the entire process end-to-end — from information gathering to financial close — so your management team can remain focused on running the business.
Confidentiality
Every engagement is treated with the highest level of discretion. We control information flow through non-disclosure agreements and staged disclosure, ensuring your business and transaction details remain protected throughout the process.
Track Record
Merchantec Capital has been involved in over 100 transactions with a combined value exceeding R40 billion. Our capital raising track record spans multiple sectors and includes:
Our advisory experience spans technology, industrials, financial services, renewable energy, infrastructure, mining, healthcare, consumer products, and real estate.
Sector Experience
Technology & Software
Renewable Energy & Infrastructure
Industrials & Manufacturing
Financial Services
Mining & Resources
Healthcare & Biotech
Real Estate & Property
Consumer Products & Retail
Telecommunications
Agriculture & Agri-processing
Transport & Logistics
Food & Beverage
International Reach
Through our membership of the Alliance of International Corporate Advisors (AICA), Merchantec Capital has access to a global network of corporate finance professionals dedicated to cross-border capital raising and deal origination.
41
Member Firms
68
Offices
39
Countries
6
Continents
This international reach is particularly advantageous when sourcing offshore capital, engaging development finance institutions, or when a transaction involves cross-border elements that require local market knowledge and relationships in other jurisdictions.
Regulatory & Professional Affiliations
Merchantec Capital is accredited and affiliated with key South African regulatory and professional bodies, ensuring compliance and credibility in every transaction we undertake.
- Registered Independent Professional Expert — JSE Limited
- Accredited Independent Expert — Takeover Regulation Panel (TRP)
- JSE Equity & Debt Sponsor
- NSX Sponsor
- SAICA Members | CFA Institute Members
- IFRS-compliant valuation standards
- Alliance of International Corporate Advisors (AICA) — Member
- DealMakers Africa — M&A Adviser of the Year (2023)
Complementary Services
Debt capital raising is often most effective when supported by a broader advisory mandate. Merchantec Capital offers a full suite of corporate finance services that can be engaged alongside or independently of our capital raising work:
Ready to Explore
Your Debt Capital Options?
Whether you have a specific funding requirement or need guidance on structuring your capital, our team is ready to help. Contact us for a confidential, no-obligation conversation about how we can support your next transaction.
