Olivia Radford

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Green Loans and Sustainability Linked Loans – same but different?

From a reputational and corporate governance perspective, green and sustainable activity both gain favour with shareholders and investors (particularly those who place emphasis on investment with a positive environmental, social and governance (ESG) impact). Green Loans and Sustainability Linked Loans have distinctive characteristics which should influence the type of loan offering borrowers consider. A key … Continue reading

Green Loans: a grassroots overview

What are Green Loans? Green loans are loan instruments made available exclusively to finance or re-finance, wholly or partly, new or existing eligible Green Projects, according to the Loan Market Association’s Green Loan Principles (the GLPs). There are no specific qualifying criteria for a “Green Project” but indicative categories set out in the GLPs include … Continue reading

Green Bonds – an alternative investment opportunity

What are Green bonds? Green bonds (also referred to as Climate Bonds) are like typical bonds but their distinguishing feature is that the proceeds of the bond are ring-fenced and exclusively allocated to support “green projects” aimed at mitigating climate change and promoting energy efficiency, pollution prevention, sustainable agriculture, clean transport, and the cultivation of … Continue reading

No general ‘prejudice principle’ protecting sureties

The court in Firstrand Bank Limited v Barreiro reconfirmed that there is no general ‘prejudice principle’ which holds that a debtor or surety is released from their obligations to a creditor if the creditor does anything that prejudices them. The court reiterated that a surety can be released, either wholly or in part, from their obligations … Continue reading

Interventions to facilitate the raising of capital on the JSE

There have been calls for the JSE to amend its Listings Requirements to allow listed companies to issue shares more quickly in times of crisis ‘without interference from shareholders’. The JSE’s regulatory framework already provides listed companies with various capital raising methods, including some expedited methods. Having to obtain shareholder approval is an important element … Continue reading

Methods of raising capital on the JSE

The JSE has amended its Listings Requirements in the past few years by introducing alternative methods of raising capital and measures aimed at expediting traditional methods. The JSE is aware that, in times of crisis, listed companies may need to raise capital at short notice. Delays in the raising of capital, particularly those caused by … Continue reading

CIPC has changed its approach to business rescue application filings during the lockdown

Voluntary business rescue applications filed with CIPC during 24 March to 30 April 2020 will be processed by CIPC to reflect the dates on which they were filed. These applications do not have to be resubmitted.  Similarly, the appointment of business rescue practitioners that were filed with CIPC during 24 March to 30 April 2020 … Continue reading

South Africa’s March 2020 ratings downgrades could be a catalyst for structural reforms

On 27 March 2020, the last of the three major ratings agencies announced its downgrade of South Africa’s sovereign credit rating to ‘Ba1’. This downgrade rendered South Africa’s sovereign credit rating as non-investment grade. On 3 April 2020, two of the three major ratings agencies downgraded the major South African banks’ credit ratings to ‘BB’ … Continue reading

SARB’s responses to COVID-19 and its recommendation to South African banks on the payment of dividends and executive bonuses in 2020

The SARB’s Prudential Authority (PA) issued a guidance note advising that it did not expect banks to distribute dividends on ordinary shares or pay cash bonuses to senior executives in 2020. This guidance is not binding on banks but is recommended. In terms of section 46(2) of the Companies Act 2008 resolutions authorising a distribution … Continue reading

COVID-19 relief for SMMEs in South Africa

Many businesses are struggling to stay afloat because they either cannot operate under the COVID-19 lockdown or the volume of their output has diminished substantially. The SMME Debt Relief Finance Scheme, the South African Future Trust and the Sukuma Relief Programme have been created to assist SMMEs with their difficulties. Many banks are offering clients … Continue reading
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