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Johannesburg - The South African National Roads Agency Limited (Sanral) has raised R1bn in a bond auction, and says it plans to raise a further R21bn over the next two years to fund roads projects across the country.
In its March 11 2009 auction, which will be settled on Monday March 16, Sanral tapped into five of its six bonds maturing in 2014, 2018, 2022, 2023 and 2028.
"Overall bids received during the auction totalled R2.8bn. A total of R1bn was allocated. The fixed-rate bonds were placed at market spreads of between 1.75% and 1.85% over the RSA government benchmarks," it said.
Sanral will raise a further R21bn over the next two years to fund, among other projects, 185km of new toll road infrastructure including the Gauteng freeway improvement project which will involve upgrading the N1 to Pretoria, the Johannesburg ring roads and the R21 from OR Tambo Airport to Pretoria.
"These upgraded roads will become toll roads and will be the first roads in South Africa where tolls are collected without having toll plazas or closures in the road, called open road tolling."
Absa Capital and Rand Merchant Bank are appointed as joint lead arrangers on Sanral's domestic medium-term note programme, which is listed on the bond exchange.
- Fin24.com
