The Airports Company South Africa (Acsa) has placed bond to the value of R1,1-billion with local institutional investors, lead arranger Absa Capital, the investment banking division of Absa Bank, said on Tuesday.

Acsa group treasurer Phetolo Ramosebudi, said that the airports company would continue to tap the local domestic market, through auctions across its listed bond issues, to fund the airport infrastructure development programme.

Acsa plans to invest R22-billion in upgrading its airports by 2012.

The bonds will be listed on the Bond Exchange of South Africa and issued under Acsa’s R12-billion domestic medium-term note programme, as part of the company’s ongoing funding requirements.

The issuance of the bonds was done in three tranches consisting of a seven-year fixed rate note, a five-year inflation link tap, and a 14-year fixed rate tap issue.

The bonds have received very strong support from the local institutions, said Absa Capital head of debt capital markets, Jacques Els.

PUBLICATION: Engineering News
AUTHOR: Creamer Media Reporter
DATED: 10th March 2009