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Imperial Holdings Limited - Safair Lease Finance Awarded R2-Billion Saa

Release Date: 29/07/2002 13:12:23      Code(s): IPL
Imperial Holdings Limited - Safair Lease Finance Awarded R2-Billion Saa         
Safair Lease Finance Awarded R2-Billion SAA Contract                            
Imperial Holdings Limited                                                       
Johannesburg - Monday July 29, 2002                                             
JSE CODES:     Imperial -  IPL     ISIN -    ZAE 0000503620                     
               Sanlam -    SLN     ISIN -    ZAE 000028262                      
Recently established Safair Lease Finance (Pty) Limited (SLF) is leasing        
five new Boeing 737-800s to South African Airways.                              
These five aircraft, which have a capital value of around R2-billion,           
were ordered from Boeing last year by SAA and SLF has taken over the            
purchase from SAA.  SAA took delivery from SLF of the first aircraft in         
Seattle on Friday last week and it is expected to arrive in South Africa        
today (Monday).                                                                 
SLF is the new 50/50 joint venture aviation financing company formed            
through a partnership between Imperial Holdings, the country`s leading          
mobility group, and the financial services group, Sanlam and its                
investment banking arm, Genbel Securities (Gensec).                             
Launched last month SLF had committed assets totalling R1,5-billion             
through lease agreements and an initial funding capacity of at least R5-        
billion. It had secured a US$50-million agreement with KLM Royal Dutch          
Airlines to finance existing aircraft in their fleet and earlier this           
year signed a 80-million Euro contract with DHL International.. With            
today`s transaction with the national carrier, its asset book now               
exceeds R3,5-billion.                                                           
At the time of the launch of SLF, chief executive Ralph Boettger                
presaged the SAA announcement by saying that SLF expected to add a              
further R2-billion to its books within weeks. Today`s announcement of           
the finalisation of the lease agreement with SAA is confirmation of that        
Although the aircraft are being delivered over the next two years, the          
lease agreements with SAA terminate concurrently in 2012.  The second           
Boeing 737-800 will be delivered in August and the third around                 
October/November of this year.  These are 10-year leases.  The fourth           
aircraft, on a nine-year lease, will be delivered during 2003 and the           
final aircraft, on an eight-year lease, will be delivered to SAA during         
Mr Boettger said that the SAA lease agreement for the Boeing 737s is            
part of SAA`s fleet renewal programme.  "These new Boeing 737s are the          
most modern, state-of-the-art narrow body airliners in the market today         
and will enhance SAA`s fleet. They will be flown on regional as well as         
domestic routes. The purchase of the five new Boeings also entrenches           
our already strong relationship with Boeing."                                   
Mr Boettger added that the new lease agreement provides SLF with a              
steady annuity income stream over the next decade and adds dollar-based         
assets to the SLF balance sheet.                                                
Commenting on the transaction, Gensec Bank chief executive Marius               
Ferreira said that this latest transaction had cemented the relationship        
between the country`s leading mobility group, Imperial Holdings which           
owns Safair and is a joint partner in SLF, and the investment bank,             
which has Sanlam as its parent.                                                 
"We see great potential in the specialist aviation leasing market.              
Partnering with the country`s leading experts in the market is                  
consistent with the international trend for aviation leasing businesses         
to link up with institutions with significant financial liquidity,              
specialist expertise and access to the international capital markets.           
We can provide that while the Imperial team can source the transactions.        
We believe that this partnership has exciting growth potential."                
Please note:                                                                    
IMPERIAL HOLDINGS activities include a wide range of services relating          
to motoring, car rental and tourism, transport, trucking, aviation              
leasing, logistics and fleet management outsourcing, forklifts, and a           
comprehensive related financial services arm supplying banking,                 
short-term insurance and life assurance. While these services combine to        
facilitate maximum synergy between business entities, a decentralised           
management structure engenders industry best practice.  Management is           
empowered to develop each business with entrepreneurship into unique            
business units within the strength and support structures of the                
Imperial group.                                                                 
Imperial employs 25 000 people at  locations in 26 countries and had            
total assets of R20-billion at December  25, 2001 and its revenues for          
the six months to December 25 totalled R13,7-billion.                           
Visit our websites - www.imperial .co.za and www.imperialtoday.co.za            
GENSEC BANK is a leading South African investment bank, specialising as         
a wholesale provider of derivative-based risk management products to the        
savings industry.  It is also a prominent arranger of debt and equity           
finance for corporates and is a manager of private equity funds.                
Corporate action advice and transaction support is provided to listed           
and unlisted companies by the corporate finance advisory unit. Through          
its proprietary trading desk the bank acts as a market maker in most            
South African financial instruments.                                            
Gensec Bank is a subsidiary of Sanlam and is fully guaranteed by Gensec         
that has a capital base of around R5-billion.                                   
Gensec Bank strives to be a leading international financial engineering         
and capital markets group.  Its growth has been driven through                  
innovations such as:                                                            
Being the leaders in the structured products industry in South Africa           
Pioneering credit derivatives in the local market                               
Pioneering the launch of the Satrix index-linked products                       
Introducing new insurance products                                              
Developing the market for index-linked warrants in South Africa.                
Visit our website - www.gensec.com                                              
ISSUED BY:               PENELOPE GRACIE INVESTOR RELATIONS                     
ON BEHALF OF:            IMPERIAL HOLDINGS LIMITED                              
FURTHER INFORMATION:     PENELOPE GRACIE                                        
CONTACT:                 OFFICE    +27 (11) 447-3301                            
                         MOBILE    082-55-77-444                                
SAFAIR LEASE FINANCE  (PTY) LIMITED, a Sanlam-Imperial company                  
Established June 2002                                                           
The new aviation lease business will grow its assets to at least R5-            
50:50 joint venture - Sanlam/Gensec and Imperial Holdings                       
Sanlam group and Imperial group each contributing a minimum of R400-            
million in equity                                                               
Equity investment by end financial year 2003                                    
Targeting up to 5 times gearing                                                 
Balance of funding to come from capital markets, both local and                 
Funding largely secured                                                         
Both Sanlam and Imperial will proportionately consolidate the profits           
from the joint venture                                                          
Board of directors :                                                            
Bill Lynch          Chairman                                                    
Marius Ferreira          Deputy chairman                                        
Ralph Boettger      Chief executive                                             
Dave Andrew                                                                     
Steven de Bruyn                                                                 
Brian Frankel                                                                   
Div Geeringh                                                                    
Johan Latsky                                                                    
Assets in business                                                              
DHL INTERNATIONAL CONTRACT                                                      
80-million Euro lease agreement with DHL International for 5 x Airbus           
A300-B4 cargo aircraft                                                          
Aircraft delivered in March 2002                                                
Leases extend for a six year period                                             
KLM ROYAL DUTCH AIRLINES CONTRACT                                               
US$50-million lease agreement with KLM for                                      
3 x Boeing 737-400s during July                                                 
Leases for between seven and eight years                                        
Started in 1960s                                                                
1980s refocused as aircraft lease and charter company                           
Imperial Holdings acquired from Safren in 1999 for R230-million                 
Fleet profile - 57 owned aircraft and more than 80 under management             
Aviation asset value = R2,3-billion                                             
R205-million operating profit  - June 2001                                      
1 028 employees                                                                 
18 locations internationally                                                    
Global aviation industry estimated average annual growth rate over next         
Air travel - 4%                                                                 
Air cargo - 6%                                                                  
Market asset value of aviation lease market + $75-billion (Jan 2002)            
Leased fleet size + 5 750 (April 2002)                                          
Currently operating lease market = 25%  of world`s fleet                        
2012 estimated at 35%                                                           
Date: 29/07/2002 01:11:53 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             

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