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African Bank receives ministerial approval, bank licence

April launch date still targeted.
African Bank curator, Tom Winterboer.

JOHANNESBURG – Minister of finance, Pravin Gordhan has provided his formal consent to the restructuring of African Bank, curator Tom Winterboer said on Tuesday. Winterboer confirmed that the Registrar of Banks, Rene van Wyk has approved a banking licence for African Bank Good Bank. 

These approvals are subject to the fulfilment or waiver of certain “suspensive conditions”, including approval by the JSE of African Bank’s Domestic Medium-Term Note (DMTN) programme, Winterboer said. 

The curator expects that the ‘transaction effective date’ for the African Bank restructuring (i.e. the formal launch of Good Bank) will remain April 4. 

“African Bank confirms in writing that, to the best of its knowledge and belief, the sum total of African Bank’s own cash and the amount that can be drawn in terms of the SARB Transaction Loan is and will be sufficient to enable African Bank to discharge the Transaction Effective Date expenses,” Winterboer said in a statement. 

In addition to a 50% participation in the R10 billion capitalisation of Good Bank – funded by a number of large domestic banks and the Public Investment Corporation at the time of the collapse of African Bank parent, African Bank Investments Limited (Abil) – the Sarb has provided a R4.3 billion loan to African Bank.

The Reserve Bank has also provided a R3 billion indemnity over eight years against possible claims on Good Bank.

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