Standard Bank partners with Metair Investments to restructure R4bn debt

Standard Bank has partnered with Metair Investments to facilitate a comprehensive restructuring of the South African automotive components and energy storage group's approximately R4 billion debt.

The biggest bank in Africa by assets acted as Mandated Lead Arranger and Global Coordinator for the balance sheet restructure including refinance of existing debts, enabling Metair to rebalance a shareholder at one of its subsidiaries (Hesto) and achieve their long-term financing turnaround strategy.

The restructured debt framework is designed to reduce Metair's liabilities and adjust repayment plans, ensuring they are in harmony with earnings growth and cash flow, thereby supporting the company's long-term financing turnaround strategy.

Metair operates through two segments: Automotive component manufacturer and Aftermarket Parts and Services. The company is valued at over R1.1bn on the Johannesburg Stock Exchange. 

“We always work closely with partners, where possible, to find innovative solutions to financial challenges that affect key sectors of the economy,” said Brydone Graham, head of debt financing solutions at Standard Bank Corporate and Investment Banking.

“We are invested in co-creating with our clients on long-term solutions, and we are particularly proud to have found a practical way to help Metair return to a financially sustainable position.”

The restructuring, greenlit by Metair’s board and lenders in March, pivots the group’s net debt of around R4bn into a more manageable structure.

Although Metair in March reported in the six-month period ended June 30, 2024, that its net debt was R5.5bn, this was reduced by the December disposal of Mutlu Akü for $110 million (approximately R2bn), netting just $5 million after adjustments. This reportedly slashed 23% of net debt and 73% of interest costs.

The debt restructure allows Metair reduce debt and rebalance its repayment profile to match earnings growth and cash flows.

“We are pleased to have a working relationship with a trusted lead financial partner that understands challenges across key sectors of the economy and is positioned to support with innovative financial solutions,” said Paul O’Flaherty, CEO of Metair Investments.

“We believe that with this new debt arrangement, Metair Group will be in a stronger position to deliver value in a way that benefits the wider automotive sector.”

The automotive sector has been one of the shining lights in the South African economy.

According to the Automotive Business Council, the automative industry association, new vehicle export sales saw a significant increase of 31.1%, reaching 39 477 vehicles in March 2025. This marks a 15.7% increase compared to March 2023.

“The industry is a key part of South Africa’s economy, and we believe that deals like this will serve the sector and benefit the country in the long-term,” said Graham.

Metair is expecting its newly acquired unit Autozone to contribute 5% to 6% in operating margin and help the firm with its expansion into Sub-Saharan Africa.

The acquisition of Autozone was among the landmarks for Metair during the full-year to the end of December 2024. Other major highlights for the period included the disposal of Mutlu, with O’Flaherty also extending his tenure by two years.

The integration of Autozone is seen as pivotal as Metair explores its growth potential in the after-sales auto market of Sub-Saharan Africa.

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