PIC sells Telkom loan to Citigroup

How can you sell a loan to somebody else?

Oh, I see, it's called passing the buck... :p

Does these guys know something that we dont? :confused:
 
EdRobinson said:
I thought loans were liabilities.
Click to expand...

And if you derive income from giving out loans like a bank for example ???.

One can argue the PIC did a very good move as they are custodians of the govt pension fund and by removing this risk (which is rather neglible amount of money considering all their total investments) and exposure they might even have "sold" it a slight profit.

The consortuim probably plans to pay off the loan using dividends from their shares .... I hope in their case that Telkom performs :).
 
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Hmmm.... more government entities getting out of Telkom's finances. Something must be coming in the pipeline.
 
Just a quickie... Telkom's making millions, so how come they're having debt? Something is not feeling right here...

This is the question which was bothering me for a long time now, and I just couldn't place it...
 
It's not telkom's debt. It's the debt of the BEE investors who borrowed the money to buy a stake in Telkom.
 
Debt for a business does not mean that it is in trouble in that business. In fact finance literature can prove that it is better for shareholders if a company has some debt. It basically comes down to the cost f debt being cheaper than the cost of equity.
 
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