Transnet has concluded a loan agreement with Nedbank for R1.1 Billion to fund 53 diesel locomotives being built by General Electric. The loan comes with a guarantee from Ex-Im, a United States government-owned export credit agency.
Brian Molefe, Group Chief Executive for Transnet says, “This is further evidence of the successful implementation of our funding strategy as the transaction lowers our cost of debt and diversifies our funding sources.”“The agreement is a significant milestone for us and confirms that despite the prevailing debt capital market conditions, Transnet is on track (excuse the pun) to realise its funding objectives and that our projects remain bankable and attractive to both local and international investors.”
