Land Bank receives R1.5bn from government, plans to pay creditors

0:00
play article
Subscribers can listen to this article
The Land Bank has received the first tranche of a R3 billion equity injection from government.
The Land Bank has received the first tranche of a R3 billion equity injection from government.
  • The Land and Agricultural Development Bank of South Africa has received the first tranche of a R3 billion equity injection from government.
  • The initial R1.5 billion will be partly used to pay back creditors.
  • The second tranche is expected to be received by the end of September.

The Land and Agricultural Development Bank of South Africa has received the first tranche of a R3 billion equity injection from government, it said in a notice to shareholders on Tuesday.

In his supplementary budget in June, Finance Minister Tito Mboweni announced a R3 billion equity injection to the bank as part of its recapitalisation, this as it was facing a liquidity crunch earlier in the year brought on by credit downgrades.

The bank on September 11 received R1.5 billion from government, and said it expects the second tranche of payments by 30 September.

"An amount of R500 million has been allocated for an upcoming capital amortisation payments to an international development finance institution due during September 2020," the notice read.

The remaining R1 billion has been set aside and will be retained for the purpose of repaying creditors.

The Land Bank expects to pay an amount equal to 5% of the total capital amount owing to each of its financial creditor funders, the notice read.

Any lender who receives a capital amortisation payment from Land Bank before 1 October 2020 will not be entitled to the Part Capital Reduction Payment.

Most recently Standard Chartered has launched legal proceedings to recover its money from the Land Bank, Fin24 previously reported. Standard Chartered had arranged a $300 million 10-year loan facility with Land Bank in 2017. 

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
16.37
(-0.17)
ZAR/GBP
21.16
(+0.45)
ZAR/EUR
19.11
(+0.64)
ZAR/AUD
11.50
(+0.37)
ZAR/JPY
0.16
(+0.31)
Gold
1866.73
(-0.66)
Silver
23.31
(-0.41)
Platinum
851.00
(-2.06)
Brent Crude
39.48
(-4.73)
Palladium
2188.00
(-2.56)
All Share
51896.97
(-0.79)
Top 40
47576.46
(-0.74)
Financial 15
9756.70
(-2.69)
Industrial 25
72681.12
(-0.25)
Resource 10
47826.96
(-0.63)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
23% - 131 votes
No, I did not.
51% - 290 votes
My landlord refused
26% - 150 votes
Vote