From Bloomberg
Real People Investments Holdings Pty Ltd., a South African provider of small loans, is in funding talks with development finance institutions after the collapse of African Bank (ABL) Investments Ltd. 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 Officer Neil Grobbelaar said by phone from Johannesburg yesterday. “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.”
African Bank, the country’s largest provider of unsecured loans, had to be rescued by the central bank on Aug. 10 after mounting losses caused investors to withdraw funding. Johannesburg-based Real People lends to small businesses and individuals who want to renovate homes or privately educate their children. It has sold 30 rand bonds and Swedish and Norwegian securities since 2011, according to data compiled by Bloomberg.
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