The Issuer is a Rand Merchant Bank managed structured funding vehicle that advances rand denominated overnight call loans to South African corporates and South African subsidiaries/branches of international corporates (the “Obligors”). All the Obligors have long-term and short-term or credit ratings or credit assessments assigned by GCR or any other recognised credit rating agency.
The March 2020 Asset Portfolio is not nearly as well diversified as observed in the preceding months, especially since May 2019. This is a risk for the Issuer in the absence of assets being replaced by RMB. The remaining obligors may also convert their facilities (from uncommitted to committed), all of which is, however, dependant on their treasury management strategies.