Financial services provider Absa Capital Infrastructure Equity Investments (IEI) has bought an 8% shareholding in the Gautrain rapid-rail project and funded a further 8% shareholding acquired by black economic-empowered (BEE) investment and management company, the J&J Group, the bank announced on Monday.

The funding of the 8% acquisition by the J&J Group would increase the BEE shareholding in the Bombela Concession Company, which held the 20-year concession for the design, build, part-finance, operation and maintenance of the R25-billion project.
 
Bouygues Travaux Publics and Bombardier Transportation each sold 8% of their shares in Bombela, but continued to hold 17%, respectively.
 
“The acquisition of equity within Bombela is a reflection of our commitment to partner the Gautrain project as it rapidly moves from the planning stages to reality,” said Absa Capital IEI head Sollie Nortjé.

Absa Corporate and Business Bank was also the largest debt funder of the Gautrain project.

The IEI division also recently announced the acquisition of a 15% stake in the Southern African Development Community’s new $30-million headquarters in Botswana.