Carol Paton Editor at Large

The R3.5bn loan to SA Airways by the Development Bank of Southern Africa (DBSA) might not be irregular, but it is unusual.

The DBSA is an infrastructure bank with a mandate to finance social and economic infrastructure “to improve the life of people” and to “support economic growth”. It never lends short-term money and most loans are for five to 10 years. It does not have an enormous capacity to lend: disbursements for the entire 2018/2019 year were R9bn. The SAA loan will tie up a third of its disbursement capacity.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now