Fin24

Transnet to raise R86.5bn in debt

2012-04-10 12:33

Johannesburg - State-owned logistics group Transnet aims to raise R86.5bn from debt capital markets to fund part of its R300bn capital expenditure plans.

Transnet, which moves commodities such as coal, iron ore and fuel, previously said it would borrow R100bn by issuing bonds, domestic and international, bilateral loans.
 
Chief executive Brian Molefe said about 70% or R213.6bn of the programme’s funding would come from cashflows.

Transnet is looking to nearly triple its capital expenditure from its original plan of around R110bn to build and expand infrastructure.

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

Comments
  • Andrew - 2012-04-10 13:58

    Well I certainly hope it will be possible to raise the required capital bearing in mind the rating this country is at present enjoying as a risk borrower.

      Lerato - 2012-04-11 09:11

      Trust me Transnet will easily get the R86.5bn from debt capital markets; as this represents a good Loan to Value ratio of about 30% as they will raise the remainder 70% from their cashflow. Wait and see how investors scramble to buy these bonds. South Africa was rated ‘BBB ’ given current global economic conditions to say SA is so risky, its undermining our potential. Stand tall and be proud of our country we not doing as bad as our detractors want us to do. Remember these rating agencies rated AIG “AAA ” a day before it went under, my point is don’t just base your judgement on these ratings and media reports, do your own research. As for me I am eagerly waiting for these bonds

      Andrew - 2012-04-11 12:06

      Trust me is a phrase I have all too often in the past in dealing with state enterprises. SAA, SABC ESKOM are there more?

  • Piet - 2012-04-10 19:59

    Another one to bail out in the future!

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