State-owned Transnet on Monday said it had raised R3.3-billion in a bond issue, bouncing back from a failed issue earlier this month.
The transport group initially planned a R1-billion bond, but it was oversubscribed by 3.4 times.
“[This achievement] reflects the strides we have taken in building and strengthening the company’s financial viability,” said Transnet CEO Brian Molefe in a statement.
Transnet, which plans to spend R300-billion on modernising and expanding its rail, ports and pipelines businesses, raises funds in the debt capital markets on the strength of its financial position, without explicit guarantees from the State.
Monday’s oversubscribed bond issue followed an attempt by Transnet two weeks ago to auction off as much as R750-million in unsecured bonds maturing in 2035, which, newswire Bloomberg reported, had been cancelled on June 3 after attracting only R122-million. At the time, Transnet attributed the low interest to market volatility.
The bond issue formed part of Transnet’s R15-billion funding programme for the year ended March 2014 – half of which had already been raised to date.
Last year, Transnet raised R14.6-billion in the capital markets.
In addition to the global and domestic bonds, Transnet also raises funds through development finance institutions, export credit agencies and issuing of commercial paper, among others.