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ABSA and Sanlam in joint venture

4 March 2004

The new company will initially target Sanlam's 2 million strong client base and, according to the new MD, Piet van der Walt, it hopes to build up a home loans book of R1bn within its first year of operation. The company will outsource its administration to ABSA but plans to fund the home loan book by securitisation.

This means that loans will be packaged and sold to investors as negotiable instruments. The first securitisation on the bond market is expected to raise between R1 billion and R1,5 billion.

The company is negotiating a 50% discount with selected attorneys on bond registration fees where no property transfer is involved.

Articles in BusinessDay and Business Report

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