JSE Sens
Equity Injection, Part Capital Reduction Repayment and the Provision of financial information
2020/09/22 10:32:00Download PDF Stock report
Equity Injection, Part Capital Reduction Repayment and the Provision of financial information
The Land and Agricultural Development Bank of South Africa
(JSE Code: BILB)
(“Land Bank”)
Land and Agricultural Development Bank of South Africa: Equity Injection, Part Capital Reduction
Repayment and the Provision of financial information
Pursuant to the SENS announcement on 15 September 2020 (and prior announcements in this regard),
Land Bank wishes to update noteholders holding listed notes issued under Land Bank’s JSE-listed
ZAR20 billion DMTN Programme dated 18 October 2010 and its ZAR30 billion DMTN Programme
dated 13 March 2017.
Equity Injection and Capital Reduction Repayment
The Land Bank received the first instalment, comprising R1,5bn, of the government equity injection
(referred to in the SENS 7 August 2020) on Friday 11 September 2020. Land Bank expects to receive
the second tranche of equity by no later than 30 September 2020.
An amount of R500m has been allocated for an upcoming capital amortization payments to an
international development finance institution due during September 2020. The remainder of R1bn
has been set aside and will be retained exclusively for the purposes of making payment of the capital
reduction amount on the basis described below.
Land Bank is pleased to confirm that it expects to pay an amount equal to 5% (five percent) of the
total capital amount owing to each of its financial creditor funders (lenders and holders of its debt
instruments) pursuant to each such party’s debt documents (the “Part Capital Reduction
Repayment”) on the basis set out below. Any lender who receives a capital amortisation payment
from Land Bank before 1 October 2020 will not be entitled to the Part Capital Reduction Payment.
The Partial Capital Reduction Repayment calculations have been made and Land Bank will ring-fence
the funds necessary to meet the aggregate Part Capital Reduction Repayment (circa R1,8 billion) in
specific bank accounts and permitted investments, where the funds will be kept, separate from Land
Bank’s other operational funds and on the basis that such funds will not be used other than to make
the Part Capital Reduction Repayment.
The Part Capital Reduction Repayment will take place as part of the implementation of the Liability
Solution (referred to in a SENS issued by Land Bank on 7 August 2020).
If the Liability Solution is not implemented by 30 November 2020, Land Bank will start the processes
necessary to enable the Part Capital Reduction Repayment to take place as soon as reasonably
possible, but in any event, by no later than 28 February 2021.
Sharing of Financial Information
In an effort to ensure equitable dissemination of information, Land Bank has established a portal
(“Investor Portal”) where market updates and information regarding the Liability Solution will be
loaded for access by interested parties. Investors will be informed when new material information is
uploaded to the Investor Portal. The Investor Portal can be accessed at
https://landbank.co.za/Investor-Portal or via the “Investors” tab on the www.landbank.co.za website.
Land Bank released a pack of financial information on the Investor Portal on Tuesday 15 September
2020. A further pack of financial information, focussing on the Liability Solution will be released on the
Investor Portal on 22 September 2020.
22 September 2020
Enquiries
Land and Agricultural Development Bank of South Africa
Ayanda Kanana, Chief Executive Officer
Khensani Mukhari, Chief Financial Officer
Rebecca Phalatse, General Manager: Marketing and Communications – Tel: 074 159 6833
Debt Sponsor
The Standard Bank of South Africa Limited, acting through its Corporate and Investment Banking
division (registration number: 1962/000738/06)
Contacts
Ms Natalie Di-Sante Email: Natalie.di-sante@standardbank.co.za Tel: +27 (0) 11 721 6125
Date: 22-09-2020 10:32:00
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