South Africa's leading life insurer Sanlam Ltd. completed a deal that allows it to invest ZAR 236 million (around US $24 million) in embattled First Strut RF Ltd's securities. Sanlam poured in the money to Bacarac Trading 142 Ltd., which was created specifically to take part in the floating-rate notes issued by First Strut, Bloomberg reported.
Sanlam's financial director Kobus Moller said that the important thing is that the policy holders will not be affected by the investment since the money was taken out of the company's corporate-debt portfolio."This exposure is adequately provided for. Policyholders are not affected," he said.
Aside from Sanlam, the other investors in First Strut's ZAR 925 million floating rate bonds are First Rand Ltd., including its Rand Merchant Bank, Prudential Portfolio Managers and Fairtree Capital.
First Strut succumbed to provisional liquidation due to default after a financial rescue plan failed to marterialize. The company was hit hard after the murder of its chair Jeff Wiggill in June this year.
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