PLC FINANCE HANDBOOK 2013

The lending market in South Africa has seen renewed activity with a number of private equity buyouts and other corporate action being funded by bank-lending. The roll-out of a government- backed renewable energy programme saw a significant amount of activity in the project finance area. Alternative funding mechanisms (such as the issuance of high yield bonds) continue to grow (in particular in light of the implementation of Basel III) and the lending market will continue to feel some pressure from these alternative funding sources in the near future.