Land and Agricultural Development Bank of South Africa (MIGA-3528)

Countries
  • South Africa
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 20, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Land and Agricultural Development Bank
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 600.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ MIGA website

Updated in EWS Jul 11, 2024

Disclosed by Bank Nov 17, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

Project Description

This summary covers a US-dollar denominated loan accompanied by a USD-ZAR cross-currency swap by Standard Chartered Bank of the United Kingdom (SCB-UK) and other financial institutions to be identified to Land and Agricultural Development Bank (Land Bank) in South Africa. SCB-UK has applied for a MIGA guarantee of up to $450 million, including principal and interest, for a period of up to 11 years against the risk of non-honoring of financial obligations by a state-owned enterprise (NHSOE). The MIGA guarantee on the accompanying swap transaction is for an amount up to US$150 million.

Land Bank is a development bank wholly-owned by the Government of the Republic of South Africa. The bank provides various financial products, notably medium-term loans to South Africa farmers; approximately 85 percent and 15 percent of the bank's loan book consists of agribusinesses that provide inputs/services to farmers and medium-to-large scale commercial famers, respectively. Land Bank also administers public interest programs, such as drought relief schemes and flood assistance programs on behalf of the government.
Under this proposed project, SCB-UK and other potential lenders will extend a loan facility denominated in US dollars to Land Bank for asset liability management purposes, as well as on-lending in accordance with its mandate. The accompanying USD-ZAR swap arrangement would enable Land Bank to repay the SCB-UK's loan without facing a currency mismatch.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to MIGA, Land Bank is a development bank wholly-owned by the Government of the Republic of South Africa. The bank provides various financial products, notably medium-term loans to South Africa farmers; approximately 85 percent and 15 percent of the bank’s loan book consists of agribusinesses that provide inputs/services to farmers and medium-to-large scale commercial famers, respectively. Land Bank also administers public interest programs, such as drought relief schemes and flood assistance programs on behalf of the government.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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