Futuregrowth to resume trading in Sanral debt instruments

5th July 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

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Asset management company Futuregrowth, which holds about R170-billion in assets, on Wednesday said it would resume trading in the South African National Roads Agency Limited’s (Sanral’s) debt instruments.

The country’s biggest private fixed-income money manager in August last year said it would stop lending money to six of the largest State-owned companies, including Sanral, stating that it would only resume loans once proper governance and oversight were restored at those entities.

The other entities that were affected included Eskom, Transnet, the Land Bank of South Africa, the Industrial Development Corporation and the Development Bank of Southern Africa.

Following an “intensive process of constructive engagement” between Futuregrowth and Sanral, the asset manager would once again trade in the roads agency’s debt instruments.

“This confirms Sanral’s high standards of governance and will contribute to broader confidence within the investment community,” Sanral CFO Inge Mulder outlined.

She added that Futuregrowth’s suspension failed to consider that Sanral was governed by legislation and its board had put processes aimed at ensuring the highest standards of corporate governance are followed, in place.

“We will engage the Transport Minister, where appropriate, to propose improvements in our current governance as we are mindful of our governing legislation, the jurisdiction of the Minister and government processes to review the governance of State-owned entities.

“Sanral remains a well-run institution with good bond market credentials. This makes it a prudent investment choice at a time when investment in road infrastructure is vital to South Africa’s future developmental trajectory,” Mulder said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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