Question NW2577 to the Minister of Finance
19 November 2020 - NW2577
Hill-Lewis, Mr GG to ask the Minister of Finance
What total number of (a) international lenders does Government still have in their State-Owned Entity (SOE) debt portfolio and (b) facilities of international lenders who have exited the SOE debt were called prematurely?
Reply:
a) There are 9 international development finance institutions that lend to the SOEs as listed below. The typical financing instrument they use are foreign currency and domestic currency bilateral loans. MIGA is listed below as one of the institutions, however, their participation is usually in the form of providing credit enhancing guarantees on behalf of the SOE and to the benefit of other lenders that would otherwise not lend to a South African SOE owing to the credit rating.
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China Development Bank |
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African Development Bank |
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International Bank for Reconstruction and Development |
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New Development Bank (BRICS Bank) |
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European Investment Bank |
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AgenceFrançaise de Développement (AFD) |
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World Bank |
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KreditanstaltfürWiederaufbau (KfW) |
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Multilateral Investment Guarantee Agency (MIGA) |
In the case of SOEs that issue bonds in foreign jurisdictions, information of registered holders is not recorded in such a manner as to be able to establish how many different individuals or institutions (hedge funds for example) are the ultimate beneficial holders of those bonds.
b) There are no facilities that have been called prematurely in the sense of accelerating debt is due. Rather, some guaranteed debt has been called to service interest and capital payments that became due, but these facilities did not accelerate. The call on guarantees to international lenders for the current fiscal year were in respect of the Land Bank and amounts to R74 million.