The total amount of funding raised by the South African National Roads Agency Limited (Sanral) for its R25-billion Gauteng Freeway Improvement Project (GFIP) has increased to R12,95-billion, after a further R750-million had been raised under the Domestic Medium-Term Note (DMTN) Programme.

The agency announced on Wednesday that the programme, which carries a full guarantee from the South African government, tapped into its two bonds with maturities in 2020 and 2034.

Overall bids totalling R1,05-billion had been received during the auction.

Bonds worth R750-million were then allocated at market spreads of 0,69% and 0,70% over the South African government benchmarks, being five and seven basis points tighter than the previous auction.

Its previous two auctions under the DMTN Programme, in August and September, had raised R1,15-billion and R750-million, respectively.

The R12,95-billion total included R9,95-billion worth of funds that were raised with guarantees.

Sanral had reported in September that, on average, construction on the various GFIP projects was about 33% completed.

Construction had started in June 2008 and would be completed in 2011.

PUBLICATION: Engineering News
AUTHOR: Chanel Pringle
DATED: 7th October 2009