Following successful road shows by Transnet in the UK and North America, Transnet SOC Ltd has completed a successful issuance of a global ZAR5 billion bond. It is registered with the London Stock Exchange at a yield of 9, 5% and is the first African local currency issuance in international capital markets.

According to Transnet SOC Ltd the issuance confirms South Africa as one of the leading investment destinations among emerging markets and provides a much needed boost for investment inflows. It signals increasing investor confidence in South Africa’s economy.

This bond, which matures in 2021, is the third successful issuance under Transnet’s Global Medium Term Note Programme (GMTN) to meet Transnet’s funding requirement. Crucially, all Transnet’s bonds under the GMTN programme are issued on the strength of Transnet’s balance sheet with no government guarantees.

As a result of this transaction and other facilities, Transnet has now met the R15,6 billion funding requirement for the current financial year.