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Transnet seeks to raise $500m

Oct 29 2009 07:19

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Johannesburg - South African logistics group Transnet Ltd plans to initially raise $500m for expansion projects through bonds it will issue in the US and Europe, acting CEO Chris Wells said on Wednesday.

Wells said the funds would be used to upgrade the iron ore and coal lines and to build a new pipeline between Durban and Johannesburg, due in 2011.

"The first issuance, when we do issue bonds is likely to be around $500m," Wells told Reuters in an interview.

Wells said the programme would be registered this year, but market conditions would determine the timing of the issue.

He said the state-owned firm was also in talks with a number of development funding institutions in Africa and Europe for possible financing of some of its projects, including expansion of its port capacity and purchase of new locomotives.

- Reuters

 
 
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