Futuregrowth Asset Management says it has lifted a ban on buying the bonds of state-owned Land Bank, subject to amendments.<\/p>\n
South Africa\u2019s largest private fixed-income money manager publicly announced last month that it had pulled the plug on lending to state owned enterprises, citing governance and transparency concerns.<\/p>\n
The funding suspension applied to Eskom, rail and ports operator Transnet, South African National Roads Agency, the Land Bank of South Africa, the Industrial Development Corporation of South Africa and the Development Bank of Southern Africa.<\/p>\n
On Monday, Futuregrowth said its ban on buying the other five firms’ debt remained in place.<\/p>\n
The company said its decision to re-open lending to Land Bank with immediate effect, follows a review of its governance and investor protection mechanisms.<\/p>\n
“This will be subject to agreed amendments and provisions in lending agreements, as well as continual monitoring of Land Bank\u2019s governance and finances,” it said.<\/p>\n
“Due diligence showed that currently there is an appropriately constituted board with a balance of skills and experience; a positive and constructive relationship between Board and Executive Authority; and evidenced application of policies and process.”<\/p>\n
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