Grindrod Bank review 2024

Grindrod Bank, a division of the Grindrod Group, operates as a registered financial services provider under the oversight of the […]

Grindrod Bank
GRINDROD Bank Limited
Type of company Private
Sector Financial
Industry Banking
Address 5 Arundel Close Kingsmead
Office Park Durban
4001
South Africa
Founded 1994
Products Invoice discounting, Corporate finance, Loans, Investments, Savings, Deposits, Property
Number of employees 190+
Phone nnumber 27 31 333 6600
Total aassets R3.7 Billion
Company website Www.grindrodbank.co.za

Grindrod Bank, a division of the Grindrod Group, operates as a registered financial services provider under the oversight of the South African Reserve Bank (SARB). Its range of services encompasses corporate finance, ETFs, debt finance, property finance, and investments.

Established in 1994, Grindrod Bank boasts a legacy spanning over two decades and is wholly owned by Grindrod Financial Holdings. Headquartered in Durban, the bank maintains operational offices in Sandton, Pretoria, and Cape Town.

Drawing from Grindrod Group’s extensive 100-year history in freight movement and specialized cargo services across road, rail, and sea, the bank has expanded its reach globally with partnerships and joint ventures in 32 countries. Leveraging this robust foundation, Grindrod Bank has evolved into a prominent player in clearing and forwarding, now offering comprehensive financial services.

Among its offerings, Grindrod Bank caters to small and medium enterprises, providing banking solutions alongside retail card services, property lending, cash deposit management, and capital markets support.

Notably, Global Credit Rating has assigned Grindrod Bank Limited a ‘BBB+’ rating, affirming its financial stability, while the bank also holds a level 5 BBBEE contributor status.

A brief history of Grindrod Bank

Grindrod Group traces its origins back to 1910 when Captain John Grindrod, a visionary entrepreneur, recognized the need for a clearing and forwarding enterprise, thus laying the foundation for what would become South Africa’s premier business in this sector.

A significant milestone occurred in 1971 when Grindrod pioneered South Africa’s inaugural container depot and service, marking a pivotal moment in the country’s containerization history.

Presently, Grindrod’s terminals boast an impressive annual capacity, handling 18.7 million tonnes of dry bulk and 120 thousand vehicles across strategic locations like Maputo, Walvis Bay, Richards Bay, and Durban.

In 1994, Grindrod Group expanded into the financial services realm with the establishment of Grindrod Bank Limited, quickly evolving into one of the nation’s leading banks with a workforce exceeding 190 employees.

A strategic acquisition in 2005 saw Grindrod Bank Limited integrate Marriott Corporate Property Bank, now operating as Grindrod Bank and Grindrod Asset Management services, managing assets totaling R15.7 billion.

Today, Grindrod Bank Limited boasts assets exceeding 3.7 billion Rands, with shareholders’ equity surpassing 250 million, achievements accumulated over two decades of dedicated growth and service.

Grindrod bank services

Corporate finance

Grindrod Bank’s corporate finance division delivers specialized services encompassing the negotiation and execution of corporate finance transactions. To bolster its expertise, the company collaborates with the adept Oaklins International team, engaging their specialized services as needed.

The Oaklins team brings a wealth of experience, offering Grindrod clients objective and independent corporate finance advice and transactional support.

Services provided by Grindrod Bank’s corporate finance division include:

  • Listings and Initial Public Offerings
  • Mergers and Acquisitions
  • BBBEE Funding and Financial Structuring
  • Capital raising

Listing and IPOs: Grindrod provides advice on the full listing process, from valuing a company, restructuring, drafting listing documents, and investor insights drafting.

The Grindrod team consists of JSE-approved Executives. This team assists clients listed on the JSE’s mainboard and AltX markets to comply with the JSE’s requirements and takeover regulations.

Mergers and Acquisitions: Grindrod identifies acquisition targets for its clients by digging deep within the industry. Making use of the services from Oaklin International, transactions are monitored from an expert point of view.

Other merger and acquisition services include preparation of company sales, valuation advice, deal structuring, overseeing negotiations and strategic development.

B-BBEE Funding and financial structuring: Grindrod has years of experience and expertise in dealing with B-BBEE transactions. The company help with negotiations, structuring, facilitating and funding B-BBEE transactions.

Capital raising: the company offers advisory services in all areas of capital raising. With a network of investors, the company is able to help capital seekers find investors.

Property Lending

Grindrod’s property lending division specializes in financing development opportunities and commercial property projects, offering funding for both investment and development purposes. The lending spectrum ranges from conventional financing to high leverage debt.

Traditional mortgage finance extends up to 70% of the property’s value, while funding exceeding this threshold falls into the category of mezzanine debt. Mezzanine financing combines elements of traditional and equity finance to bridge the gap between available cash resources and the traditional senior debt level.

With operational offices in Durban, Johannesburg, and Cape Town, Grindrod’s property lending division can assess properties across various locations within South Africa.

Exchange-Traded Funds

The bank allows investors to invest in ETFs managed by CORESHARES. CORESHARES is a business unit within the Grindrod financial group and manages a collective investment scheme in securities and tracks investment solutions across EFTs.

This is for investors who are looking to invest in a low-risk portfolio. ETFs are low-risk in nature as they track and monitor an index like the JSE. Because the low-risk returns are low as compared to investing in a single stock.

Other services

Grindrod also offers invoice factoring services to businesses that need finance from an uncashed invoice. This helps businesses with immediate liquid cash whenever needed.

Retail card services are also offered through FSB registered intermediaries who provide banking services to Grindrod bank clients. These intermediaries are co-brands that also offer Mastercard branded debit cards with ts and cs governed by agreements entire between Grindrod Bank and financial intermediaries.

Grindrod Bank Limited Executive

Executives Board Members
David Andrew Polkinghorne
CEO
Julian Hilton Beare
Andrew Blades
Exec director
Robert Anthony Norton
Rakesh Garach
CFO
Michael John Hankinson
Unathi Mtya
CTO
Hassen Adams
  Michael Mun – Gavin
  Walter Dayson Geach
  Amanda Dambuza
  Petrus Johannes Uys

Conclusion

Grindrod bank limited is a great bank /company to use if you want your company to go public. With consideration of the experience that the bank has and with the help of Oaklin International, company valuation needs and JSE requirements can be easily met.

As much as Grindrod Bank is not your typical commercial bank like FNB or Absa, it has put its resources into investment banking more than anything else. Its ability to compete with major banks is limited, and it cannot, at this stage, be a match for any of the big five banks.

It is interesting how Grindrod does its business. Many are curious about what the bank will have to offer for the future, considering its long-term objectives.

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