The SA National Roads Agency (Sanral) has raised a lower than anticipated R275 million in a bond auction.
The entity wanted to raise R500 million, but only received bids totalling R465 million and issued R275 million at mark-to-market prices.
Sanral says the lack of interest was unfortunate given the announcement last week by Moody's Investor Services, that Sanral's ratings outlook had been upgraded from negative to stable.
Inge Mulder, Sanral CFO says: "The result of this auction has once again demonstrated the close relationship between government and Sanral, a government implementing agency. Investors are sensitive to policy uncertainty and this was clearly communicated today, which overshadowed the positive announcement by the ratings agency, Moody's."
Moody's made the said announcement last week, saying "The decision to affirm Sanral's ratings and change the outlook to stable from negative primarily reflects the evidence of good e-toll collections related to the Gauteng Freeway Improvement Project, the company's biggest toll road project."
The next Sanral bond auction is scheduled for August 2014.
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