Grindrod Limited (JSE:GND)

Andrew Waller
CEO
Market Cap (AUD): 3.25B
Sector: Industrials
Last Trade (AUD): 473 +0 (+0%)
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1. About

Grindrod Limited (JSE:GND) is a world-class freight logistics operation based in South Africa. The group is represented by subsidiaries, joint venture and associated companies in 24 countries worldwide, employing more than 4 700 skilled and dedicated people.

As a South African listed company, the Group's vision is to create sustainable returns and long-term value for shareholders. This is achieved through the contribution of its divisions 2 divisions:

Freight Services Division

The Freight Services division provides services for the integrated movement of dry-bulk, bulk liquid, containerised cargo and vehicles along specific import / export corridors. With a focus on these specific cargo types, the operations provide road transportation, rail, port operations, terminals, intermodal solutions, warehousing, storage, stevedoring, seafreight, ships agency services, travel agency services and all facets of traditional logistics.

A vast network of influence, specialised skills, strategic relationships and joint ventures (including successful BEE ventures), ensures that Grindrod is able to deliver on the most complex of freight services.

Grindrod Bank

Grindrod Bank is a competitive investment bank providing bespoke financial services to its private, corporate and institutional clients.

Cash Deposit Management
Sourcing deposits is a key activity of the Treasury Division and traditionally the rates offered on deposits are amongst the highest offered in the market. The activities of this division support a variety of the Bank’s functions and products.

Property Lending
Grindrod Bank’s property division focuses on commercial and industrial property finance for both development and investment opportunities. The Bank's funding options range from traditional senior finance to higher leveraged mezzanine debt. Traditional property mortgage finance is offered where properties are geared up to a level of 70% of value. Funding over and above this traditional level is considered mezzanine debt which is a hybrid of traditional senior finance and equity. Mezzanine funding is utilised to bridge the gap between the available cash resources that a client may have and the traditional senior debt level.

SMME Banking
The Bank's focus is generally on transaction values of between R20 million and R50 million, where funding is utilised to grow established and acquire shareholdings in, well managed small to mid-market companies, with a history of steady profits and strong cash flow generation with the aim of job creation and growing the economy. Working capital and “capex-backed” solutions are implemented via overdrafts, term loans and invoice discounting facilities ranging from 6 months to 3 years in duration. Acquisition (leveraged buy-outs, recapitalisations and empowerment transactions) and mezzanine finance are typically provided using preference share instruments over 3 to 5 years.

Capital Markets
The Capital Markets Division originates and manages unlisted cumulative redeemable preference shares issued primarily by large South African institutions. In addition to the preference share market-making activities the Capital Markets division assists in marketing and placing Grindrod Bank issued notes in terms of the Grindrod Bank Domestic Medium-Term Note Programme (DMTNP).

Retail Card Services
The Retail Division offers banking products and services via FSB registered financial intermediaries who on-provide these banking services to their clients as part of their own unique and differentiated offerings. These intermediaries, often referred to as co-brands, may offer Maestro or MasterCard branded debit cards under terms & conditions governed by a co-branding agreement entered between the financial intermediary and Grindrod Bank.

2. Business model

3. Strategy

4. Markets

5. Competition

6. History

7. Team

8. Financials

9. Risk