Transnet continues to pursue its R340-R380 billion infrastructure investment programme – the Market Demand Strategy (MDS) – aimed at strengthening the country’s railway, ports and pipelines infrastructure.

To support the successful execution of the MDS, Transnet raises funding through domestic and international debt capital markets, on the strength of its financial position with no government guarantees since 2005. Transnet has already funded its full borrowing requirement for the 16/17 financial year and has a healthy liquidity position, with R22 billion available at present.

Transnet has noted with regret reports about Futuregrowth’s position on lending to state-owned companies (SOCs).

The company engages with the investor community on a regular basis through road shows and one-on-one interactions with lenders. The objective of these engagements is to provide updates on our financial and operational performance, and to facilitate transparent conversations, whilst fostering a healthy relationship.

Transnet is available to engage with all its lenders and investors, including Futuregrowth, to address any concerns they may have regarding the company’s business activities. It is regrettable that Futuregrowth, which represents about 1,25% of our total borrowings, opted to overlook the channels of communication available to them. Transnet unfortunately learnt of their decision to halt loans to SOCs through the media.

Transnet views itself as a credible and reliable borrower with strong credit fundamentals as evidenced by its stand-alone credit profile and investment grade credit rating. We are also committed to maintaining the highest standards of good corporate governance and adhere strictly to internal policies and procedures.

Transnet has a diversified funding approach through a number of sources, depending on market conditions. These include the Domestic Medium-Term Note programme, Global Medium-Term Note programme, Export Credit Agencies, Development Finance Institutions and other financial institutions.