London Mining May See Africa Banks Exposed to $200 Million Loan
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London Mining Plc, a Sierra Leone iron-ore producer running out of funds as Ebola deters investors and the steelmaking ingredient’s price drops, may default on a $200 million loan provided by four banks, RMB Morgan Stanley said.
FirstRand Ltd., Africa’s largest lender by market value, Togo’s Ecobank Transnational Inc. and Nigeria’s FBN Holdings Plc helped fund the loan, Greg Saffy, analyst at the Johannesburg-based equity research company, said in an e-mailed note today. Standard Chartered Plc was also involved in the loan, which was drawn down in full in December, according London Mining’s annual financial statements.