RMB Picked as Financial Adviser for South Africa’s Land Bank
JOHANNESBURG – Creditors of the biggest lender to South African farmers picked Rand Merchant Bank as financial adviser after it missed a loan repayment that triggered a cross default on a 50 billion-rand ($2.7-billion) bond program, according to people familiar with the matter.
The Johannesburg-based investment bank has been tasked with coming up with cash-flow projections for the Land and Agricultural Development Bank, the people said, asking not to be identified as an announcement hasn’t been made. RMB — a unit of FirstRand Ltd., Africa’s largest lender by market value — must also deliver a strategic plan for the state-owned company and assess its viability, they said.
The 108-year-old bank, which supplies about 30% of loans in the agricultural industry, last month failed to make repayments on a revolving credit facility, triggering the default event on its bonds. It has since said it’s seeking a one-year deferral of interest and capital payments.
Source: iol.co.za