10 °c
London
Friday, April 16, 2021
No Result
View All Result
FurtherAsia FurtherArabia FurtherBrazil FurtherRussia
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

South African Airways to Meet Lenders to Negotiate Debt Rollover

FurtherAfrica by FurtherAfrica
November 6, 2017
in Africa, Banking, Economy, Finance, Government, Industry and Commerce, Infrastructure, South Africa, Tourism, Trade, Transport, Travel
Reading Time: 2 mins read
0
South African Airways to Meet Lenders to Negotiate Debt Rollover
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Vuyani Jarana, chief executive officer at South African Airways, discusses keeping the airline from going bankrupt.

South African Airways will meet a group of domestic lenders on Tuesday to negotiate the refinancing of about 6 billion rand ($423 million) in outstanding loans, according to its new chief executive officer.

Click here to see Bloomberg Video

The banks have in principle agreed to extend the loan terms, Vuyani Jarana, who took the helm at the loss-making airline on Nov. 1, said during an interview at Bloomberg’s Johannesburg office on Monday. The group is led by Nedbank Group Ltd. and includes FirstRand Ltd., Standard Bank Group Ltd., Barclays Africa Group Ltd. and Investec Plc.

“We are meeting the banks to discuss the rollover of the loans that have expired and to extend the expiry dates,” Jarana, who is 47, said. “That will give us the going-concern status that will enable us to renegotiate longer-term contracts.”

The government has transferred more than 5 billion rand to the airline this year to avoid it defaulting on debt owed to Citigroup Inc. and Standard Chartered Plc after the lenders refused to extend the terms of the loans. SAA is one of several cash-strapped South African state-owned companies that the government has extended bailouts to and it has a 19.1 billion-rand state-guarantee facility, a safety net that is effectively keeping it solvent after six consecutive unprofitable years.

“The meeting is critical,” Jarana said. “We are hoping for an extension of about 12 months or so, that’s the minimum.”

The rise in government guarantees to state-owned companies is a risk to state finances, Moody’s Investors Service said on Oct. 30. S&P Global Ratings and Fitch Ratings Ltd. cut their assessments of the nation’s foreign-currency debt to junk in April, citing political uncertainty and concerns about economic growth, after President Jacob Zuma removed Pravin Gordhan as finance minister.

SAA, which doesn’t have any bonds, has no plans to enter the debt market, Jarana said.

“Given the current outlook of South Africa, it’s probably going to be harder for any state-owned enterprise to be able to successfully issue bonds and raise capital,” Jarana said. “I think its probably going to be on the backburner. If you are in a weak position like we are in, very vulnerable, very few people will trust you in that fashion. So what is important is to execute on the turnaround plan, bring SAA back to a position of strength.”

Jarana, a former executive at mobile-network operator Vodacom Group Ltd., is SAA’s first permanent head since 2015. The airline has hired a restructuring expert in Peter Davies and the government, its sole shareholder, has overhauled the board, appointing JB Magwaza as chairman in the place of Dudu Myeni, who is friends with Zuma and leads his charitable foundation. Lenders had demanded the removal of Myeni, Business Day newspaper reported last month.

Source: Bloomberg

Related

Tags: airlineBarclays Africa Groupcredit ratingdebtFirstRandFitch RatingsInvestecMoodysNedbankS&P Global RatingsSAASouth Africasouth african airwaysSouth African Airways CEOStandard Bank GroupVuyani JaranaZuma南アフリカ南非
ScanSendShare320Tweet200Share56Pin72Send
Previous Post

Mozambique, Zimbabwe ink rails transportation deal

Next Post

Mozambique: FBI examining whether banks aided corruption on hidden debt

FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Water

Zimbabwe to export water to South Africa

by Staff
April 16, 2021
Conference Access to Africa coming to Dakar, Senegal
Conference

Conference Access to Africa coming to Dakar, Senegal

by FurtherAfrica
April 16, 2021
Soon, Africa’s largest utility will not own any power lines
Energy

Tanzania rural electrification project continues to make progress

by Staff
April 16, 2021
Economy

Mozambique: ‘Valuation of the metical only useful if reflected on the economy’

by FurtherAfrica
April 16, 2021
East Africa Oil Pipeline construction date still unknown
Pipeline

East Africa Oil Pipeline construction date still unknown

by Taarifa Rwanda
April 16, 2021
Next Post

Mozambique: FBI examining whether banks aided corruption on hidden debt

Bank of Angola provides US$500M for auctions in August

Angola BNA keeps 16% interest rate unchanged

Emirates to resume flights to Nigerian capital

Emirates to resume flights to Nigerian capital

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2021 AFSIC
2022 Indaba Mining

FurtherAfrica Partners

The Exchange Club of Mozambique Taarifa Rwanda
CrudeMix Africa TechGist Africa Farmers Review Africa
Botswana unplugged Financial Insights Zambia Africa Oil & Power
Harambee Africa Novafrica  

Subscribe to FurtherAfrica

Enter your email address to receive notifications of new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

© 2021 FurtherMarkets

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?