Economists and business leaders have welcomed the South African Reserve Bank’s (SARB) decision to cut the repo rate by a further 50 basis points (bps) to 3.75% on 21 May 2020. This has resulted in a reduction of the prime rate quoted by our commercial banks from 7.75 % to 7.25 %. This is the
Jackie Midlane
COVID-19 guaranteed loan scheme for businesses with an annual turnover of less than R300 million
By Tshegofatso Rammutla & Jackie Midlane on
In a further initiative to combat the economic fallout of the COVID-19 pandemic, the state, in collaboration with the banking sector and the South African Reserve Bank (SARB) has announced a R100 billion loan scheme to assist ailing small and medium-sized businesses (SMMEs).
On 12 May 2020 National Treasury, the SARB and the Banking Association…
Update to Disaster Management Regulations (16 April 2020)
By Jackie Midlane & Raghemah Hendricks on
The lockdown period has been extended to 30 April 2020.
The Disaster Management Regulations related to COVID-19 therefore still apply, with some changes. The changes aim to manage the remainder of the lockdown and to enable a phased and controlled return to normal economic and social activity.
Here are the main takeaways from the amended…
COVID-19 and Finance Documents: Clauses to consider
By Jackie Midlane on
The COVID-19 pandemic affects borrowers and lenders and their financing arrangements. The most significant clause to consider is the Material Adverse Effect (MAE) clause – this clause broadly captures unpredictable and unforeseen events or circumstances that would otherwise be difficult to incorporate into the agreement specifically. Read our article on the impacts of COVID-19 on…
COVID-19 and Finance Documents: Could the Material Adverse Effect clause be triggered?
By Jackie Midlane on
How does the COVID-19 pandemic affect borrowers and lenders and their financing arrangements?
A Material Adverse Effect (MAE) clause is included in most finance agreements. It is a catch-all concept to capture unpredictable and unforeseen events or circumstances that would otherwise be difficult to incorporate into the agreement specifically.
Broadly, a MAE clause covers a…
Energy update from the Minister of Energy
By Jackie Midlane & Raghemah Hendricks on
The Minister today committed government to a collaborative approach with the private sector in dealing with the current energy crisis in South Africa.
At the DLO Africa Power Roundtable Conference today (26 March 2019), the Minister spoke positively about the imminent release of the final Integrated Resource Plan (IRP), the unbundling of Eskom and long-term…
Unrestricted financial assistance – Financiers to consider the risks
By Jackie Midlane & Steve Chemaly on
The Companies Amendment Bill released on 21 September 2018 for public comment, proposes a raft of amendments to the Companies Act. Section 45 presently provides that any financial assistance granted by a holding company to its subsidiary must be authorised by the board and the shareholders by way of a special resolution. If not the…
Financial assistance to subsidiaries reviewed in the Companies Amendment Bill: What is ‘its own subsidiary’?
By Jackie Midlane & Steve Chemaly on
The amendments proposed in the Companies Amendment Bill 2018 have caught the attention of financiers and attorneys in so far as the provision of financial assistance (e.g. providing a loan, guaranteeing a loan, and securing any debt or obligation), to ‘its own subsidiary’ is concerned.
The Amendment Bill proposes to amend section 45 by removing…
Crossing borders to procure coal – Coal Baseload IPP Procurement Programme
On Wednesday, 20 April 2016 the Minister of Energy issued a determination setting out what bidders can expect to see in the request for proposal under the coal baseload cross border independent power producer procurement programme. The determination provides that:
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Cross Border Projects under Coal Baseload Independent Power Producer Procurement Programme Request for Qualification and Proposal
By Jackie Midlane & Malibuye Cossie (ZA) on
The Coal Baseload Independent Power Procurement Programme Request for Qualification and Proposals (RFP) released by the Department of Energy (DoE) allows bidders to bid cross border projects. We highlight some of the key features relating to cross border projects under the RFP.
Cross border facility and cross border project
A cross border facility is a…