African Bank: Hedges save it from more losses

African Bank, the failed South African lender with Sf555 million (R7.2 billion) of debt, said hedges put in place after August saved it from more losses, allowing administrators to continue recovery plans. African Bank, which collapsed in August after losses mounted and funding dried up, has four Swiss franc bonds that were sold from 2012 to 2014 to help fund lending. “African Bank management worked closely with the SA Reserve Bank and the South African banks involved in the consortium to reinstate an appropriate series of hedging arrangements,” Gavin Jones, the head of funding and liability management in African Bank’s treasury, said on Wednesday. “Switzerland’s central bank’s decision to lift the cap on the franc will have no overall impact on the announced restructuring plans for African Bank.” – Bloomberg