Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • South Africa
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Multilateral Investment Guarantee Agency (MIGA)
Status: Proposed
Bank Risk Rating: FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2016-12-20
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: Land and Agricultural Development Bank
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Finance
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 600.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.

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Primary Source

Original disclosure @ MIGA website
Updated in EWS: 2017-08-02
Disclosure Date: 2016-11-17
Land and Agricultural Development Bank of South Africa
MIGA-3528

Project Description
Project Description This summary covers a US-dollar denominated loan accompanied by a USD-ZAR cross-currency swap by Standard Chartered Bank of the United Kingdom (SCB-UK) and other financial institutions to be identified to Land and Agricultural Development Bank (Land Bank) in South Africa. SCB-UK has applied for a MIGA guarantee of up to $450 million, including principal and interest, for a period of up to 11 years against the risk of non-honoring of financial obligations by a state-owned enterprise (NHSOE). The MIGA guarantee on the accompanying swap transaction is for an amount up to US$150 million. Land Bank is a development bank wholly-owned by the Government of the Republic of South Africa. The bank provides various financial products, notably medium-term loans to South Africa farmers; approximately 85 percent and 15 percent of the bank's loan book consists of agribusinesses that provide inputs/services to farmers and medium-to-large scale commercial famers, respectively. Land Bank also administers public interest programs, such as drought relief schemes and flood assistance programs on behalf of the government. Under this proposed project, SCB-UK and other potential lenders will extend a loan facility denominated in US dollars to Land Bank for asset liability management purposes, as well as on-lending in accordance with its mandate. The accompanying USD-ZAR swap arrangement would enable Land Bank to repay the SCB-UK's loan without facing a currency mismatch.
Investment Description
Contact Information
ACCOUNTABILITY MECHANISM OF MIGA The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/
Bank Documents