Trade of ABIL shares and debt suspended on Johannesburg bourse - CNBC Africa

Trade of ABIL shares and debt suspended on Johannesburg bourse

Southern Africa

by Reuters 0

Trade in shares and bonds of African Bank Investments has been suspended. PHOTO: AIDS Research

The suspension, with immediate effect, comes a day after the South African Reserve Bank announced a 17 billion rand rescue plan for the unsecured lender widely known as ABIL.

The central bank put ABIL, which has been hammered by waves of bad debts, under curatorship, or outside supervision, as part of the rescue plan.

(READ MORE: SARB to introduce support measures for ABIL)

The central bank will pay seven billion rand for ABIL's “bad loan” book, while a consortium of commercial banks including Standard Bank have agreed to underwrite a 10 billion rand capital raising.

“The board of the company considers that the suspension is in the public interest,” ABIL said in a statement, adding that it would also apply to have trade of its securities suspended on exchanges outside of South Africa.

ABIL shares are also traded in the United States and Germany and it has debt denominated in US dollars and Swiss francs.

(READ MORE: ABIL’s woes worsen as group expects FY headline loss of R6.4 bln)

ABIL shares last traded at 31 South African cents on Friday, valuing the company at 53 million dollars and representing a 97 per cent plunge this year.