South Africa: Interest Rate Swap Deal of the Gupta Kind - It's a Stalemate in Transnet Vs Nedbank Battle


Transnet and Nedbank are headed for mediation as negotiations over a tainted interest rate swap deal hit a deadlock.

Transnet's battle with Nedbank over a controversial interest rate swap deal is headed for mediation after more than two years of tense legal wrangling.

It's been suggested that mediation is a sign that Transnet has lost the bid to drive Nedbank into any concession of wrongdoing or convincing the bank to reverse problematic elements of the transaction.

The swap deal - struck with the help of two Gupta-linked companies on the eve of the Nenegate scandal in 2015 - continues to cost the state logistics company between R75-million and R100-million in extra loan costs each month.

Transnet told Daily Maverick that it is awaiting Nedbank's "agreement to the mediation rules". In a written response to questions, the state-owned logistics company said the parties had agreed to this process and that a mediator has been identified.

Nedbank played a key role in the interest rate swap deal involving the state logistics company and one of its pension funds, the Transnet Second Defined Benefit Fund (TSDBF).

The swaps involving Nedbank were executed on part of a R12-billion package of loans taken out to...

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