The South African National Roads Agency Limited (Sanral) has raised a further R750-million in the second auction under the domestic medium-term note programme, bringing the total amount of funding raised for its R25-billion toll road expansion programme to R12,2-billion.

The agency announced on Wednesday that it had received bids totalling R1,8-billion, but that R750-million of bonds had been allocated at market spreads of 0,75% and 0,77% over the Republic of South Africa (RSA) government benchmarks.

This tapped into Sanral’s two bonds with maturities in 2020 and 2034 and carried a full guarantee from the South African government.

Absa Capital and Rand Merchant Bank were appointed as joint lead arrangers and market markers on Sanral’s Bond Exchange of South Africa-listed domestic medium-term note programme.

In August, Sanral allocated R1,5-billion of bonds at market spreads of 0,8% over the RSA government benchmarks, in its inaugural auction under the domestic medium-term note programme.

The agency had, to date, also raised R9,95-billion without a guarantee.

The funds would mainly be used for its R20-billion Gauteng Freeway Improvement Project, which Sanral noted would be “substantially completed” before the start of the 2010 FIFA World Cup.