A single obligor limit is the maximum amount a bank is allowed to lend a single borrower or an individual in relation to the total shareholders’ fund of that bank.
In the testimony yesterday of PIC executive head of impact investing Roy Rajdhar it emerged that the PIC had exposed itself to the tune of more than R2.1 billion in four transactions, all lead sponsored by entrepreneur Kholofelo Maponya.
The exposure to Maponya related to Afgri (now renamed Daybreak Farms); SA Home Loans; a housing venture called Makhaya Makhaya and a healthcare project.
“Now during this commission you hear about people being funded multiple times. We at the moment in the PIC have developed a single obligor that has now been tabled through the committees, so we have some guidance to limit the extent we support single individual or groupings,” Rajdhar said.