Second money manager halts funds to Eskom

PUBLISHED: Thu, 01 Sep 2016 14:06:31 GMT

A day after Africa’s biggest private fixed-income money manager, Fututegrowth revealed it has suspended lending money to six of South Africa’s largest state-owned enterprises due to governance concerns, Denmark’s Jyske Bank AS revealed it won’t lend to Eskom.

READ: Why Futuregrowth is suspending loans to S.A’s state-owned enterprises

“We pulled the plug on Eskom too yesterday,” Rune Hejrskov, senior money manager at the Silkeborg, Denmark-based company, who oversees about $1.3bn in funds at the bank, said in e-mailed comments to Bloomberg.

Like Futuregrowth’s Chief Investment Officer Andrew Canter he told Bloomberg that he could “easily see more lenders follow suit. We see issues on lending going forward and more governance issues”.

READ:Land Bank, Eskom, Transnet respond to S.A’s largest debt manager loan suspension

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