http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.31Change: 0.00
R/$ = 11.14Change: -0.06
Au 1214.35 $/ozChange: -2.68
Pt 1331.00 $/ozChange: -4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 26, 2009

Transnet secures R4bn loan from Japanese Bank for port expansion

Back
Transnet acting CE Chris Wells discusses the significance of the loan agreement it had signed with the Japan Bank of International Cooperation (Videographer: Lizelle Cronje; Editing: Darlene Creamer)
Construction|Engineering|Harbour|Johannesburg|Port|Absa Capital|Africa|Bank Of Tokyo Mitsubishi|China Construction Bank|Development Bank|Japan Bank Of International Cooperation|Japan Bank Of International Corporation|Merchant Bank|Mizuho Corporate Bank|Momentum|Nedbank|Old Mutual Specialised Finance|Projects|Standard Bank Plc|Standard Bank South Africa|Sumitomo Mitsui Banking Corporation|Transnet|Africa|Europe|South Africa|Durban Harbour|Finance|Logistics|Products|Services|State-owned Freight Logistics Group|Chris Wells|Toshiro Machii|Koss R-80 Consumer Headphones|Ricoh Caplio R30 Digital Camera|Middle East
Construction|Engineering|Harbour|Port|Africa|Projects|Transnet|Africa||||Logistics|Products|Services||||
construction|engineering|harbour|johannesburg|port|absa-capital|africa-company|bank-of-tokyo-mitsubishi|china-construction-bank|development-bank|japan-bank-of-international-cooperation|japan-bank-of-international-corporation|merchant-bank-company|mizuho-corporate-bank|momentum|nedbank|old-mutual-specialised-finance|projects|standard-bank-plc|standard-bank-south-africa|sumitomo-mitsui-banking-corporation|transnet|africa|europe|south-africa|durban-harbour|finance|logistics|products|services|state-owned-freight-logistics-group|chris-wells|toshiro-machii|koss-r-80-consumer-headphones|ricoh-caplio-r30-digital-camera|middle-east
© Reuse this



State-owned freight logistics group Transnet has signed a R4-billion loan agreement with the Japan Bank of International Cooperation (JBIC), as part of its R80-billion capital investment programme, acting CE Chris Wells announced in Johannesburg, on Thursday.

Wells said the ¥35-billion loan would be used to fund the widening and deepening of the entrance to the Durban harbour, which was one the group’s strategically significant projects.

The loan had a two-year drawdown and a ten-year amortising schedule during which 20 payments would be made.

Wells would not be drawn on what interest rate would be paid, only saying that it was below Transnet’s weighted average debt costs, which was “well below” 12%.

He added that this was the first time the group had secured a loan in the international market. It would, however, continue to seek finance from the international market, but this would not exceed one-third of the R30-billion it was hoping to raise in total.

This loan, together with the R5,7-billion it had secured with eight financial institutions last week, already represented about one-third of the funding it required.

Last week, Wells announced that it had secured the loans with Standard Bank plc, through Standard Bank South Africa, Absa Capital, Nedbank, Citi and Rand Merchant Bank (RMB). RMB had also coordinated the participation of Old Mutual Specialised Finance, the China Construction Bank and Momentum.

At the time, Wells had said that it was also in talks with two other financiers, possibly the JBIC and the African Development Bank (AfDB).

Wells noted on Thursday that, as part of the loan agreement, Transnet has agreed to be supportive of Japanese interests in South Africa.

JBIC head of finance for the Europe, Middle East and Africa region Toshiro Machii explained, however, that this did not mean that Transnet would be pressured into procuring products and services from Japanese companies.

He said that the bank would be satisfied with the outcome of tenders in which Japanese companies were participating, whether they were awarded the tenders or not, as long as the tender process was conducted fairly.

JBIC leveraged a 40% participation from other Japanese financial institutions, including the Bank of Tokyo Mitsubishi UFJ, the Mizuho Corporate Bank and the Sumitomo Mitsui Banking Corporation in the loan.

JBIC had a mandate to fund projects that support Japanese companies overseas, with Machii stating that Japanese companies would benefit by the widening and deepening of the harbour entrance, as the harbour was heavily used by Japanese companies.

Further, Japanese maritime operators were also frequent users of the harbour.

Meanwhile, Wells told Engineering News Online that it was still in talks with the AfDB as part of its plans to secure foreign funding.

He hoped this would come to fruition within a few months.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Video News
More
 
 
Latest News
Updated 12 minutes ago Energy efficient commercial buildings in South Africa delivered better returns than non-energy efficient buildings, a new study by the Investment Property Databank and the Green Building Council of South Africa has shown. The study, which investigated 461 commercial...
Mogamad Sadick Davids
Updated 1 hour 53 minutes ago The Coega Development Corporation (CDC) has announced ambitious plans for the expansion of metals beneficiation initiatives and metals sector investments in South Africa through its newly unveiled 2014-2024 metals cluster strategy, which it hopes will attract...
Updated 2 hours 51 minutes ago Construction major Aveng has offloaded its wholly-owned Australia- and New Zealand-based utility, resources and infrastructure contracting business Electrix to European concern Vinco Energies for some R1.4-billion in cash. Aligned to the strategic objective of...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks