Sanral raises another R837m
The South African National Roads Agency Limited (Sanral) has raised a total of R15.9 billion for its national roads improvement project.
The agency recently raised a further R837 million under its Domestic Medium-Term Note (DMTN) programme, which allows it to issue notes covered by a government guarantee on an ongoing basis, in the second auction for this year.
Sanral tapped into its two bonds, with maturities in 2020 and 2034, and issued a new 2023 inflation-linked bond. Overall bids received during the auction amounted to R1.15 billion. A total of R837 million of bonds were allocated, at market spreads of 0.55%, over the RSA government benchmarks.
In February, in its first auction for 2010, the agency raised R1 billion under its DMTN programme, by tapping into its two bonds with maturities in 2020 and 2034.
In 2009, Sanral raised a total of R14.05 billion in funding, which will be used to complete the Gauteng Freeway Improvement Programme (GFIP).
The agency needs a total of R22 billion in debt finance to fund the first phase of its upgrade project, R20 billion of which will be allocated to the GFIP.
The GFIP aims to provide an interconnected network of inner and outer ring roads as a solution to the traffic congestion experienced in Gauteng. The 185km of new toll infrastructure will see the N1 to Pretoria, Johannesburg ring roads and the R21 to Pretoria, become electronic tolling zones. Roads will be operated on the user-pays principle after October 2011.
The agency recently awarded its R1.16 billion electronic tolling contract to the Electronic Toll Collection joint venture - a consortium led by intelligent road traffic telematics company Kapsch Sweden. The system will be installed over a period of 18 months.
The agency previously stated it would raise another R12 billion by the end of March 2010, while R50 million has been allocated to its so-called HWAY bond. Most of this capital would be raised through the DMTN programme.