South Africa’s Transnet could issue bond in 2016
JOHANNESBURG - South African logistics group Transnet could issue an international bond or draw down existing credit facilities to fund its up to 380 billion rand ($26 billion) infrastructure plan.
Chief Executive Siyabonga Gama told Reuters the company was fully funded for its 2015 financial year and that a bond and credit facility were two options on the table for funding in 2016.
“We will decide early next year what our needs are. We will probably issue a bond and we have a number of credit lines where we have not drawn down on,” Gama said.
State-owned Transnet, which transports commodities such as coal, iron ore and fuel, is spending as much as 380 billion rand over the next decade on expanding and revamping railways, pipelines and ports in Africa’s most industrialised economy.
The company has raised 50 billion rand for 2015, mostly through loans and bonds.
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