Investec PLC (INVP.LN) said Monday that it has credit exposure to South African retailer Steinhoff International Holdings N.V. (SNH.JO) and a number of subsidiaries, but it is not expecting to suffer losses.
The banking and asset management company said the exposure is mainly through its Investec Bank Limited (South Africa) subsidiary, and is primarily comprised of lending exposure and overnight facilities.
These are secured by guarantees from Steinhoff Africa (PTY) Ltd. and Steinhoff Africa Retail Ltd. (SRR.JO).
The company said it does have derivative exposures that are linked to Steinhoff's share price and that have a maximum potential loss of 3% of Investec's post-tax operating profit.
Investec said Investec Bank holds Steinhoff convertible bonds in its portfolio, but they represents less than 0.3% of the group's consolidated tier one capital.