The South African National Roads Agency Limited (Sanral) has raised R1-billion in its first auction for 2010, under its domestic medium-term note programme by tapping into its two bonds with maturities in 2020 and 2034.

The R1-billion raising carried the full guarantee from the South African government.

Overall, bids received during the auction totaled R1,851-billion.

Sanral noted on Wednesday that R1-billion of bonds were allocated at market spreads of 0,58% and 0,60% over the South African government benchmarks, which were tighter than the previous closing spreads.

Including the R9,95-billion raised without a guarantee, Sanral has now raised R15,05-billion of funding for the expansion and upgrade of toll roads, particularly the Gauteng freeway improvement project which is planned to be substantially completed before the 2010 FIFA World Cup.

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

PUBLICATION: Engineering News
DATED: 3rd February 2010