CONFIDENCE in its bonds continues to grow as investors see it as a "well-run, prudent and safe investment", says the South African National Roads Agency Limited (Sanral).
Sanral’s second bond issue for the year was oversubscribed with a total of R625m in bids. Only R400m was allocated.
Sanral is seeking to raise R400m a month from its bond auctions this year. Last year, it required R600m monthly from its auctions.
The Treasury and the Gauteng provincial government will cover a R390m annual revenue shortfall in the next 22 years, resulting from additional discounts and changes under a new dispensation for e-tolls announced by Deputy President Cyril Ramaphosa last year.
This includes a 60% discount on a historical debt of more than R6bn accumulated by Gauteng road users between December 2013 and August last year, as well as a 50% reduction in the monthly cap for tolls.
Sanral chief financial officer Inge Mulder said on Wednesday, while government support was important, the revenue received from the Treasury and the provincial government was only a small part of the picture.
The agency also raised R400m at its first bond auction for the year last month, albeit at spreads wider than benchmarked government bonds.
However, wide spreads were a reality for all state-owned companies, the agency said.
The success of its bond auctions is good news for Sanral, which was forced to cancel them last April, after a number of failed auctions.
Picture: SOWETAN
CONFIDENCE in its bonds continues to grow as investors see it as a "well-run, prudent and safe investment", says the South African National Roads Agency Limited (Sanral).
Sanral’s second bond issue for the year was oversubscribed with a total of R625m in bids. Only R400m was allocated.
Sanral is seeking to raise R400m a month from its bond auctions this year. Last year, it required R600m monthly from its auctions.
The Treasury and the Gauteng provincial government will cover a R390m annual revenue shortfall in the next 22 years, resulting from additional discounts and changes under a new dispensation for e-tolls announced by Deputy President Cyril Ramaphosa last year.
This includes a 60% discount on a historical debt of more than R6bn accumulated by Gauteng road users between December 2013 and August last year, as well as a 50% reduction in the monthly cap for tolls.
Sanral chief financial officer Inge Mulder said on Wednesday, while government support was important, the revenue received from the Treasury and the provincial government was only a small part of the picture.
The agency also raised R400m at its first bond auction for the year last month, albeit at spreads wider than benchmarked government bonds.
However, wide spreads were a reality for all state-owned companies, the agency said.
The success of its bond auctions is good news for Sanral, which was forced to cancel them last April, after a number of failed auctions.
Change: -0.47%
Change: -0.57%
Change: -1.76%
Change: -0.34%
Change: 0.02%
Data supplied by Profile Data
Change: -1.49%
Change: 0.08%
Change: -0.47%
Change: 0.00%
Change: -0.04%
Data supplied by Profile Data
Change: -0.31%
Change: 0.04%
Change: -0.13%
Change: -0.22%
Change: -0.23%
Data supplied by Profile Data
Change: -0.28%
Change: -1.15%
Change: -0.07%
Change: -1.21%
Change: -0.22%
Data supplied by Profile Data