South African fixed-income asset manager Futuregrowth has lifted a suspension on buying the bonds of state-run Land Bank subject to amendments, it said yesterday.
Futuregrowth, which manages client assets of about R170-billion, halted buying the debt of six state-owned firms - including power utility Eskom and logistics firm Transnet - last month, citing political uncertainty following investigations into Finance Minister Pravin Gordhan.
But its ban on buying the other five firms' debt remained in place though it was in talks with the companies about the issue, it said yesterday
Its decision to lift its ban on buying the debt of Land Bank, a major lender to farmers, follows an "extensive review of the governance and investor protection mechanisms", Futuregrowth said.
"Land Bank agreed to improve transparency and public disclosure of its governance structures."
Another South African fund manager, Abax Investments, said this month it had reduced purchasing bonds of state-owned firms.
