“We are grateful for the unwavering support that we receive from our shareholder, the government, and the National Treasury,” it quoted CEO Danie du Toit as saying in a statement on Friday. “It demonstrates a confidence at high level for the measures taken by the new board and management and a commitment to support us through the next stages of the turnaround.”
According to BusinessLIVE, Denel, which is one of several state-owned enterprises (SOEs) whose financial distress after years of mismanagement and corruption has put the country’s last remaining investment-grade rating at risk, had asked for R2.8bn. Denel said the other R1bn would be considered during the process of preparing the 2020/2021 budget process.
Du Toit was quoted as saying the company, which sold R50m worth of two-year floating-rate notes this month, had received the funding after satisfying the Treasury that it was making progress in restructuring its business, entering new strategic partnerships, and finding new markets for its technology.
Denel, which fell into an operating loss of R1.7bn in the 2017/2018 fiscal year, had been promised funds from the Treasury contingency reserve and was rescued by banks in June, BusinessLIVE said.