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Sanral raises R837m for upgrades

Mar 03 2010 15:46

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Johannesburg - The SA National Roads Agency (Sanral) has raised R15.9bn of funding for the expansion and upgrade of toll roads, it said on Wednesday.

The funding would partly be used for the Gauteng Freeway Improvement Project which the agency planned to complete before the Fifa World Cup.

Sanral's second bond auction for 2010 under its Domestic Medium Term Note Programme raised R837m, it said.

The bonds carry a full guarantee from the Government of the Republic of South Africa.

Sanral tapped into its two bonds with maturities in 2020 and 2034 as well as issuing a new 2023 inflation linked bond. Overall bids received during the auction amounted to R1 150bn, Sanral said.

A total of R837m of bonds were allocated at market spreads of 0.55% over the RSA Government benchmarks - tighter than the previous closing spreads for the nominal bonds and a spread of 37 basis points for the inflation linked bond.

Including the R9.95bn raised without a guarantee, Sanral has now raised R15.9bn of funding, it added.

The agency said Absa Capital and Rand Merchant Bank had been appointed as Joint Lead Arrangers and Market Makers on Sanral's Bond Exchange SA listed Domestic Medium Term Note Programme.

- Sapa

 
 
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