Sanral raises R500m in bond auction

A toll gate on the N1 North just before the Beyers Naude offramp in Gauteng. Photo: Dumisani Sibeko

A toll gate on the N1 North just before the Beyers Naude offramp in Gauteng. Photo: Dumisani Sibeko

Published May 22, 2014

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Johannesburg - The SA National Roads Agency Limited (Sanral) raised R500 million at a bond auction it held on Wednesday.

“We are overwhelmed by the strong support as well as the pricing which is mostly below mark-to-market rates,” Sanral chief financial officer Inge Mulder said in a statement.

“The agency is well ahead of its forecast in terms of cash received to date and this continues to encourage the investors to see the upside in Sanral bonds.”

The agency said a total of R1,755 million was offered by investors, which was three-and-a-half times oversubscription.

The full suite of guaranteed bonds under the Domestic Medium Term Note programme was offered and the Sanral tapped four of these at the auction, it said.

“Sanral is encouraged by the results of its latest auction and appreciates the continued support from its investors.

“The significant interest in the Hway34 bond, a long-term fixed based bond which traded three basis points below yesterday's (Tuesday) market price, is testament in investors' confidence in Sanral,” Mulder said.

Sanral would hold its next bond auction on June 4. - Sapa

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