Good news from Investec on Steinhoff exposure
The bank’s shares leapt after it reassured investors that its loans to the retailer were negligible - though it did warn of a trading loss
Investec’s share price rose as much as 4.1% to R88.49 on Monday morning after it reassured investors that its exposure to Steinhoff International was negligible. Investec has two shares trading on the JSE which are theoretically identical. Possibly thanks to the rand strengthening 0.35% against the pound to R18.28, Investec plc shares with code INP strengthened more than its limited shares with code INL, which rose 3.5% to R87.99. Investec said in a statement on Monday that its loans to Steinhoff represented less than 0.25% of its total R464.8bn credit exposure at September 30. Its loans to Steinhoff Africa Retail (Star) were less than 0.1%. "Based on the information currently available to the group, Investec is not expecting to suffer any losses on these credit exposures," Monday’s statement said. "The exposures are largely to Steinhoff Africa’s subsidiaries, with an immaterial exposure to Steinhoff. "The majority of the transactions have been undertaken by Investec Bank, with Inve...
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