Land and Agricultural Development Bank of South Africa warns of debt default
The Land and Agricultural Development Bank of South Africa has warned holders of debt amounting to ZAR50 billion ($2.6 billion) that it is in danger of defaulting.
It advised noteholders in its ZAR20 billion Domestic Medium-Term Note Programme for 2010 and those, who held notes in its ZAR30 billion DMTN Programme for 2017 that there was a “potential” default event. The Land Bank gave no explanation for the possible default, but said it is currently experiencing a “liquidity shortfall” and that it’s “engaging with various stakeholders with a view to addressing this challenge".
In unaudited results for the half-year to end-September, released on 5 February, it incurred a ZAR168.6 million loss, and saw its net interest margin reduce from 2.8% to 2.4% and its non-performing loans increase from 5.4% to 9.9%.
