The South African National Roads Agency's (Sanral's) delayed bond auction went ahead successfully this morning.
It says it achieved its target mandate of raising R500 million and a total of R1.75 billion was offered by investors, which amounts to oversubscription of three-and-a-half times oversubscription.
"We are overwhelmed by the strong support as well as the pricing which is mostly below mark-to-market rates. We consider this a reflection of investors' confidence in Sanral's long-term future," says CFO Inge Mulder.
The bonds were allocated in four tranches at interest rates of between 0.29% and 0.65%.
The next auction is scheduled for 4 June for about the same value.
Sanral says it is "well ahead of its forecast in terms of cash received to date and this continues to encourage the investors to see the upside in Sanral bonds".
In the middle of last year, Bloomberg quoted spokesman Vusi Mona as saying: "Sanral has almost totally depleted its available cash."
According to data compiled by Bloomberg, Sanral had debt, including interest, of R65 billion and R1.48 billion of bonds, which matured at the end of October.
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