KELLY ESTABLISHES R120 MILLION SECURITISATION PROGRAMME

Johannesburg, 6 May 2010 - The Kelly Group has entered into a long-term debtors’ securitisation funding programme, in terms of which it has raised R120 million from Investec Bank acting through its division, Investec Capital Markets, for a period of three years.

With the company’s existing term funding scheduled for maturity on 30 April 2010, the board decided to replace the maturing funding arrangement with an updated and extended funding transaction.  After considering proposals from various potential funders, Kelly Group opted to implement an updated debtors’ securitisation funding transaction as its primary source of debt.  This arrangement has proved an efficient means of securing long term funding for the Kelly Group, and its staff and advisors have accumulated significant experience in managing its funding on this basis.

“Having established a track record over the last nine years, and with strongly performing debtors’ book, the decision to raise funding again via a securitisation was considered the most appropriate means of optimising the group’s strong cash flows and experienced debtor management.  By issuing zaAA credit rated debentures to Investec Capital Markets, the company has been able to secure its anticipated funding requirements for the next three years at competitive rates based on the strength of its debtors’ book, and to secure a new long term funding structure with Investec Bank,” said Grenville Wilson, chief executive.