https://www.engineeringnews.co.za

SAA borrows R1.5bn to keep running – report

6th May 2013

By: Sapa

  

Font size: - +

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.

Edited by Sapa

Comments

Showroom

WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (26/04/2024)
Updated 4 hours ago By: Martin Creamer
Magazine cover image
Magazine round up | 26 April 2024
26th April 2024

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.077 0.14s - 137pq - 2rq
Subscribe Now