African Bank hits Real People fundingComment on this story
Johannesburg - Real People Investments Holdings, a local provider of small loans, is in funding talks with development finance institutions after the collapse of African Bank Investments Limited (Abil) wiped out demand for corporate bonds.
“It takes more time and it means more work and there’s probably less bang for your buck,” chief executive Neil Grobbelaar said on Thursday.
“We can probably go a year without selling a bond. It’s been a tumultuous time and the South African capital markets are going to be a tough place for businesses like ourselves.”
Abil, the country’s largest provider of unsecured loans, had to be rescued by the central bank on August 10 after mounting losses caused investors to withdraw funding.
Real People lends to small businesses and individuals who want to renovate homes or privately educate their children. – Bloomberg