SAA needs R16bn fast to stay in the air

THE NATIONAL carrier is seeking R16 billion in long-term funding that the unprofitable governmentowned entity said would be used for working and capital expenditure and to help manage outstanding debt. SAA would need to access the funding two weeks after the signing of loan documentation, the airline said in a request for proposals from financial institutions. The company is seeking rand-denominated secured and unsecured funding with a three- to 15-year tenure and has set a closing date of September 16 for proposals. SAA is dependent on government-guaranteed loans to stay operating and is awaiting a decision by the National Treasury on additional support before it can file overdue financial statements for the year to March 2015. SAA had previously appointed littleknown BnP Capital as a financial services adviser to source funding on its behalf, but reversed the decision after a legal challenge from the Organisation Undoing Tax Abuse who said BnP had had its Financial Services Board licence suspe ed and that SAA had not followed a competitive bidding process. – Bloomberg