The South African National Roads Agency Limited (Sanral) reported on Thursday that it received bids totalling R1,28-billion during its third bond auction of 2009, which would be settled on May 18.
The auction tapped into three of the agencyâ€™s six bonds maturing in 2013, 2018, 2022, 2023 and 2028.
Market spreads of 1,7% to 1,8% over the RSA Government benchmarks where achieved, which were 5 to 10 basis points â€œtighter than where the bonds were markedâ€.
The latest issue meant that Sanral had now raised R9,95-billion of the funding it required for its R25-billion expansion and upgrade of toll roads, including the R20-billion Gauteng Freeway Improvement Project, which would be completed by late 2010.
Absa Capital and Rand Merchant Bank were the joint lead arrangers on the agencyâ€™s Bond Exchange of South Africa-listed Domestic Medium-Term Note Programme (DMTNP).
Sanral planned to raise another R12-billion by the end of March 2010, and was also planning a retail bond offer, which would be the first to be listed on the Yield-X, probably within the next three months.
Some R50-million could be raised through its so-called â€˜HWAYâ€™ (pronounced â€˜highway) bond, which would offer a return of Johannesburg Interbank Agreed Rate plus 45%.
But, by far the bulk of the capital would be raised through a DMTNP, through which the first money was secured on July 10 last year.
PUBLICATION: Engineering News
AUTHOR: Terence Creamer
DATED: 14th May 2009