Photo by: Duane Daws
State-owned freight logistics group Transnet confirmed on Monday that it had raised another R1.5-billion, five-year bond through its Domestic Medium Term Note Programme – the issuance forms part of a larger R15.6-billion fundraising campaign for the group’s 2014 financial year.
The company said in a statement that orders worth about R2-billion had been forthcoming and the bond was priced at 6.43%, or 130 basis points above the three-month Johannesburg Interbank Agreed Rate.
“We will use the proceeds of the issuance to finance our capital investment programme, which is focused on rejuvenating and modernising Transnet’s rail, port and pipelines logistics infrastructure,” the company said.
The group is in the second year of its R307-billion, seven-year rolling infrastructure programme and besides the domestic bond market is funding the programme through internally derived revenue, as well as through debt secured from export credit agencies, international bonds, bank loans and development finance institutions.