ANNOUNCEMENT 29 Jan 2020
The Development Bank of Southern Africa approved the injection of ZAR 3.5 billion to South African Airways.
NUMBER OF INTERVENTIONS
South African Government News Agency. News. "R3.5 billion to aid SAA business rescue" of 29 January 2020. Available at: https://www.sanews.gov.za/south-africa/r35-billion-aid-saa-business-rescue
On 29 January 2020, the Development Bank os Southern Africa (DBSA) announced the injection of ZAR 3.5 billion (circa USD 239.3 million) into South African Airways (SAA).
Concretely, the DBSA will be responsible for transferring the ZAR 2 billion (USD 136.7 million) approved by the government on 5 December 2019 as well as providing a further ZAR 1.5 billion (circa USD 102.6 million) post-commencement finance (please, see related state act for information on the previous announcement).
The economic resources seek to rescue de government-owned air carrier firm from bankruptcy.
On 29 October 2020, the South African Ministry of Public Enterprises announced committing to provide R10.5 billion to finalize the business rescue plan and restructuring of SAA (see related state act).
The bailout of South African Airlines (SAA) was approved in the form of post-commencement funding, which consists of a credit line with governmental guarantees and that is to be repaid in future budget appropriations. Hence, the capital injection approved by the DBSA includes a loan guarantee of the South African government.