The South African National Roads Agency Limited (Sanral), in the inaugural auction under the domestic medium-term note programme carrying a full guarantee from the South African government, issued two new bonds with maturities in 2020 and 2034.

Overall bids received during the auction totalled R2,344-billion.

R1,5-billion of the bonds were allocated at market spreads of 0,80% over the RSA Government benchmarks.

Including the R9,95-billion raised without a guarantee, Sanral has now raised R11,45-billion of funding for the expansion and upgrade of toll roads, particularly the R20-billion-plus Gauteng Freeway Improvement Project, which is planned to be completed by late next year.

Sanral also recently concluded a loan from the European Investment Bank, which will also be used towards funding the project.

Absa Capital and Rand Merchant Bank have been appointed as joint lead arrangers on Sanral’s BESA-listed domestic medium-term note programme.

PUBLICATION: Engineering News
DATED: 5th August 2009