Investor confidence in Transnet has been boosted with the state owned enterprise issuing a R1,5 billion five-year bond through its programme to raise funds in the local debt capital markets.

Mboniso Sigonyela, spokesman for Transnet SOC Ltd says, “The issuing of this bond emphasises our commitment and strategy to use the domestic capital markets as the primary source of funds for infrastructure investment.”

The bond, issued through Transnet’s Domestic Medium Term Note Programme, was priced at the 3 months JIBAR (Johannesburg Interbank agreed rate)  plus 130 basis points (6,43%).

Sigonyela adds, “Transnet received orders  worth about R2 billion and the company will  use the proceeds of the issuance to finance the capital investment programme, which is focused on rejuvenating and modernising Transnet’s rail, port and pipelines logistics infrastructure.”

Concludes Sigonyela, “During the year to 31 March 2014, Transnet is going to raise R15,6 billion in funding, the bulk of which will be raised through a variety of sources, including Export Credit Agencies, domestic and international bonds, bank loans and Development Financial Institutions.”