Despite prevalent controversy over its e-toll system, the SA National Roads Agency (Sanral) has raised R450 million in a bond auction and says this will allow it to "remain on track for serving South Africans".
Sanral chief financial officer Inge Mulder says the roads agency held a bond auction aimed at raising R500 million today. "We offered the full HWAY (guaranteed) suite of bonds. We wanted to get R500 million, but only allocated R450 million as prices were outside of guidance.
"The increase in prices was expected, as recent movements on state-owned enterprises and government bonds were trending upwards. The total bids offered were R750 million," said Mulder."
This is Sanral's sixth bond auction since the commencement of e-tolling on 3 December last year.
The R450 million was allocated as follows:
Hway20: R300 million at 60bps (base points) (price guidance 55 bps)
Hway23: R100 million at 31bps (CPI linked; price guidance 28bps)
Hway34: R50 million at 73bps (price guidance 71bps)
Mulder says the state-owned roads agency is encouraged by the results. "Sanral appreciates the continued support from its investors, despite the current climate of uncertainty.
The next auction is scheduled for 1 October, for approximately the same value, she says.
Sanral has reiterated its commitment to the repayment of the debt incurred by the implementation of the Gauteng Freeway Improvement Project - for which e-tolls was implemented.
"The agency remains well ahead of its forecast in terms of cash received to date."
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