Airports Company SA gets new funding, shelves projects

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South Africa's state-controlled airports company ACSA has signed a new R3 billion loan with domestic banks and shelved major projects to shore up its finances in the coronavirus crisis, its finance chief said on Thursday.

Since March, when South Africa declared a state of disaster to contain the Covid-19 pandemic, major domestic airports such as the continent's busiest, OR Tambo in Johannesburg, have closed, knocking revenue at Airports Company SA .

"We've got facilities of 3 billion rand confirmed," Chief Financial Officer Siphamandla Mthethwa told Reuters. The deal with Standard Bank, Rand Merchant Bank and Nedbank doubled an existing 1.5 billion rand overdraft-type facility up for renewal in June, he said, adding further easing of lockdown restrictions this week to allow inter-provincial leisure travel would help.

ACSA, which is 74%-owned by the government and counts pension fund manager Public Investment Corporation as its second-biggest shareholder, told lawmakers in May it needed National Treasury support to finance up to R11 billion of new debt by 2025. But Mthethwa said on Thursday this sum was a"worst case" projection over a six-year period and the more relevant number was R3.5 billion that ACSA needed by 2023.

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