DBSA confirms equity bridge loan facility to South African Airways
Following a statement issued by the SAA Business Rescue Practitioners, the DBSA confirms that the Bank has approved an Equity Bridge Facility of R3.5billion to South African Airways (SAA).
In December 2019, the commercial banks provided a R2bn tranche of Post Commencement Funding in support of the business rescue process at SAA.
As part of the business rescue process initiated in relation to SAA, the joint business rescue practitioners, the Department of Public Enterprises and National Treasury engaged several financial institutions with a view to acquiring an Equity Bridge Facility for SAA.
The Facility was approved by the Bank’s Board Credit and Investment Committee after a thorough and detailed consideration of the matter in full compliance with the Bank’s internal credit approval processes. The Facility is secured by way of a Government Guarantee issued by the Government of the Republic of South Africa, represented by the Minister of Public Enterprises with the concurrence of the Minister of Finance as required by the South African regulatory framework.
The Development Bank of Southern Africa (DBSA) is a leading Development Finance Institution (DFI) in Africa. DBSA participates across the entire infrastructure value chain and provides planning, project preparation, financing, and implementation support for economic and social infrastructure in South Africa, SADC and the rest of the African continent to improve people’s lives, boost economic growth and promote regional integration through infrastructure development.