Share

Transnet to borrow R100bn for new capex

Johannesburg - Logistics group Transnet will borrow R100bn over the next seven years to pay for a R300bn infrastructure programme, its chief executive said on Monday.

The spending plan was heavily promoted in President Jacob Zuma’s state of the nation policy address this month, with government officials saying it will help create jobs and increase the country’s competitiveness.

State-owned Transnet, which moves commodities such as coal, iron ore and fuel, is looking to nearly triple its capital expenditure from its original plan of around R110bn to build and expand infrastructure in Africa’s biggest economy.

Bottlenecks at ports and rail lines run by Transet have slowed exports and economic growth.

“We will only need to borrow around R100bn by issuing bonds, domestic and international, bilateral loans,” Brian Molefe said.

He did not say when the bonds would be issued, with debt problems in Europe making projections difficult.

He did not foresee any problems in attracting interest for the bonds and was confident the company would find the money to pay for the rest of the expenditure from its own balance sheet.

Details of the new capital programme will be announced in the coming weeks, but Molefe indicated that 55% of that would be spent on new projects. The remainder would go for maintenance of existing infrastructure.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.3%
Rand - Pound
24.09
+0.1%
Rand - Euro
20.60
-0.0%
Rand - Aus dollar
12.37
+0.5%
Rand - Yen
0.13
+0.6%
Platinum
901.60
-0.1%
Palladium
998.41
-0.8%
Gold
2,153.87
-0.3%
Silver
24.93
-0.5%
Brent-ruolie
86.89
+1.8%
Top 40
65,642
-0.9%
All Share
71,879
-0.8%
Resource 10
52,855
-0.9%
Industrial 25
99,386
-1.1%
Financial 15
16,545
-0.5%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders