Transnet agrees to R12bn of loans to fund expansion plan

Johannesburg - Transnet agreed to sign R12bn of loans with five lenders including Bank of China and Nedbank to help fund the state-owned ports and rail operator’s expansion plan.

The financial institutions signed separate deals with Transnet on the same commercial terms, acting CEO Siyabonga Gama told reporters on Monday at the company’s Johannesburg head office.

The three other lenders are Barclays Africa, Futuregrowth Asset Management and Old Mutual.

Transnet plans to spend as much as R380bn over the next decade to expand and upgrade rail and port capacity in South Africa, the world’s biggest manganese producer and the continent’s largest source of iron ore and coal.

The company said last month it was slowing some investment and shifting from a previous seven-year investment plan amid slumping commodity prices.

Bank of China, Nedbank and Barclays Africa will each lend Transnet R3bn, while Futuregrowth and Old Mutual will provide R1.5bn each, Gama said.