South African Airways published a request for proposals on Sunday, seeking R16 billion (€991m) in long-term funding, either secured or unsecured, Business Day Live reported.
The funding is said to be for working capital, capital expenditure and for consolidation of its R15 billion (€929m) debt.
The tender opened on Monday, August 29, and requires the successful bidder to allow SAA to access the R16 billion in three tranches from the end of October.
In a statement released by SAA on August 26, the airline said it did not need to be placed under business rescue as it was able to and continued to pay its debts as and when they became due and payable. “Whilst it is true that the airline’s balance sheet needs to be strengthened, it is important to understand that its funding requirements, whether in the form of guarantees by the shareholder or a cash injection (which the airline has not received for more than a decade), are intended for future and not current or immediate obligations,” SAA said in a statement.
