Johannesburg - The South African National Roads Agency Limited (Sanral) in its eighth auction for 2010 raised R500m under its Domestic Medium Term Note Programme carrying a full guarantee from the Government of the Republic of South Africa, by tapping into its
HWAY20 and HWAY34 bonds at the mark to market spreads.
Including the R9.95bn raised without a guarantee, Sanral has now raised R20bn of bonds for the expansion and upgrade of toll roads, particularly the Gauteng Freeway Improvement Project (GFIP).
Sanral recommenced with construction work on the GFIP during July 2010 after a brief suspension due to the World Cup. Thus far 80% of the first phase of the project has been completed and the estimated completion of the bulk of phase one is at the end of 2010. The project to date has created over 20 000 jobs, 34 interchanges have been significantly upgraded and there will be 4 to 6 lanes open to traffic in each direction.
This project has already significantly reduced congestion on the national road system. Apart from widening of the freeways, median lighting and Intelligent Transport Systems (ITS) has also been provided for the network.
Absa Capital and Rand Merchant Bank are appointed as Joint Lead Arrangers and Market Makers on Sanral's JSE listed Domestic Medium Term Note Programme.