The funding was approved following recent discussions that the Department of Public Enterprises and National Treasury held with various financial institutions including the DBSA. The facility will assist SAA with the balance of the Post Commencement Funding (PCF) required for the pre and restructuring phase of South African Airways (SAA).
This funding is complimenting the R2billion tranche that the local commercial banks have provided as part of the Post Commencement Funding Package.
The entire facility of R3.5 billion is backed by a guarantee issued by the Minister of Finance.
The Board of DBSA in considering the application went through its normal governance processes where the approval was granted on market related terms. The DBSA will remain close to the progress of the business rescue as it is one of the conditions to our investment process.
“Our support for SAA is one we do not take lightly, “ says Paul Currie from DBSA. As a DFI, we believe that the funding support is in the best interest of the broader economic ecosystem and mitigates against any potential systemic risk. ”
Note to Editors:
About the Development Bank of Southern Africa (DBSA)
The Development Bank of Southern Africa (DBSA) is a leading Development Finance Institution (DFI) in Africa. Established in 1983, the 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. The institution’s mission is to improve people’s lives, boost economic growth and promote regional integration through infrastructure development.
For more information, visit www.dbsa.org
For further information contact:
DBSA Media Relations
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