Johannesburg, South Africa — 11 June 2013 – State-owned South African transport and logistics group Transnet has issued bonds to the value of US$330 million (R3.3billion).
Announcing this here, Transnet CEO Brian Molefe said the move affirmed continued investor confidence in the group and its portfolio of projects, despite the ongoing uncertainty in financial markets, reports Fin24.
According to Molefe, Transnet had planned on issuing a US$100 million (R1billion) bond, but due to the overwhelming demand from the market, the bond was oversubscribed over 3.4 times.
The bond issue was part of Transnet’s domestic medium-term note programme, which formed part of the company’s US$1.5 billion (R15billion) funding programme for the year.
Last year, Transnet raised US$1.46 billion (R14.6 billion) in the capital markets, including a United States bond issuance of US$800 million R8 billion, through its global medium-term note programme.
“So far this year, Transnet has raised about half of the funding requirement for the year to end March 2014,” Molefe said.
In addition to the global and domestic bonds, Transnet raised funds through development finance institutions, export credit agencies and issuing of commercial paper. A commercial paper is an unsecured, short-term debt instrument issued by a corporation for financing, among others, its short-term liabilities.
Molefe said the company raised funds in the local markets on a weekly basis to cover the costs of its “audacious” US$30 billion (R300 billion) infrastructure investment programme.
Source: Fin24. For more information, click here.