Asset management company Stanlib Asset Management has reinforced its commitment to social infrastructure development with a R250-million loan facility to Calgro M3, a JSE-listed developer specialising in affordable housing.

Stanlib says this strategic investment underscores its focus on delivering impactful capital solutions through its fixed-income private markets.

The funding, fully drawn, will be used to meet development costs across multiple affordable housing projects currently in Calgro M3’s pipeline.

Stanlib says these developments are aligned with its social impact ethos, which is supported by the Stanlib Khanyisa Impact Investment Fund.

“This transaction exemplifies our commitment to mobilising capital for real economy opportunities that deliver both financial and societal value, while delivering attractive risk-adjusted returns for our clients,” says Stanlib Asset Management fixed-income private markets portfolio manager Zeyn Ismail.

“Calgro M3 has a long-standing and proven record of delivering quality affordable housing developments. Affordable housing is a cornerstone of inclusive growth, and we are proud to support Calgro M3 in expanding access to housing in South Africa.”

Stanlib notes that the Calgro M3 facility is one of several impactful transactions concluded by Stanlib this year.

Earlier this year, Stanlib provided R250-million in funding to Preference Capital Group – a financial services provider focused on financing South African small and medium-sized enterprises.

The company says these transactions support Stanlib’s role in job creation and economic empowerment through responsible lending.

Stanlib describes its Private Markets team as “one of the largest and best-resourced credit teams in the African continent”.

The company points out that the team manages R52-billion in assets and has originated transactions worth over R120-billion. Among other portfolios, this team also manages the Stanlib Khanyisa Impact Investment Fund.