SAA borrows R1.5bn to keep running – report
SA Airways has postponed its bond issue in favour of borrowing R1.5-billion from two banks, it was reported on Monday.
Chief financial officer Wolf Meyer told Business Day this was until the Cabinet adopted the airline's turnaround plans.
The R1.5bn was working capital to keep operations running while SAA grappled with high fuel prices and its loss-making, long-haul business in a highly competitive market.
SAA had used a R5-billion state guarantee extended to it last year to secure the loan.
"All the legal documents (for the loans) are being finalised and we are waiting for the minister's final approval," Meyer told the newspaper.
"The cash will be available today [Friday] or Monday."
Meyer said SAA had also received a "good rate" on the loans because of the guarantee.
The loans were believed to have been extended by Rand Merchant Bank and Investec, the newspaper reported.
However, Meyer refused to confirm this, and told Business Day only that the loan was split "50:50" between two local banks.
"We require it (the loans) for working capital... this was always our plan to use part of the guarantee to raise money," he was quoted as saying.
SAA would repay the loan once it had gone ahead with its bond issue.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation