JOHANNESBURG, July 25 South African firms
Investec, Nedbank and Sanlam said on
Thursday they had exposure to troubled construction company
First Strut, which has 925 million rand ($95 million) worth of
First Strut's holding company was placed in provisional
liquidation last week, raising the possibility of a potential
default on the bonds, Business Day newspaper reported on
The co-founder and chairman of First Strut's holding
company, First Tech, was found dead next to his Bentley in the
early hours of June 20, the newspaper said.
Officials for insurer Sanlam, lenders Nedbank and Investec
confirmed to Reuters they had bought some of the 2016
bonds from First Stut. All three firms declined to
give the size of their exposure.
Investec spokeswoman Ursula Nobrega said its exposure to the
bonds was though its asset management arm. In addition,
Investec's banking arm has lent 240 million rand to First Strut,
That loan was "fully secured on underlying collateral, which
is predominantly property," she said.
The bonds, arranged by First Rand unit Rand
Merchant Bank and issued in 2011, have since been suspended from
trading on the Johannesburg stock exchange.