http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.18Change: -0.45
R/$ = 11.58Change: -0.15
Au 1294.60 $/ozChange: 15.79
Pt 1265.00 $/ozChange: 16.50
 
 
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 Letters 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 7 hours ago Western Cape entrepreneurs had just four days before applications closed to secure cash injections of at least R10-million by pitching their business ideas to major funding bodies at the Western Cape Funding Fair – the province’s own “Dragon’s Den”. The deadline for...
INSTALLATION The system could also pinpoint an aircraft to within two nautical miles
National carrier South African Airways (SAA) is deploying a locally developed satellite payment system, which is also able to track the aircraft anywhere in the world, across its fleet of airliners. The system, developed by satellite authentication company SatAuth,...
Financial services provider Stanlib aims to channel the bulk of a R1.2-billion infrastructure equity fund into some of the infrastructure projects under way in South Africa, with a particular focus on renewable energy. Stanlib on Tuesday said the fund, which would...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
 
 
 
 
 
This Week's Magazine
BRUCE BRADFORD The 3D printers have a clear upgrade path to eventually print in wood, ceramics and metal-alloys
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...
 
 
 
 
 
 
 
 
 
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