Sanral blames premier for poor bond auction

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

Johannesburg - The SA National Roads Agency Limited (Sanral) blamed Gauteng premier David Makhura for the lack of interest from investors in its bond auction, Business Day reported on Thursday.

This was after Makhura announced his plan to establish a panel to review e-tolls in the province.

Sanral depended on monthly bond auctions to raise capital to fund operations, according to the report.

It has to raise between R500 million and R600m monthly to be self sufficient.

At Wednesday's auction, Sanral reportedly raised only R275m out of total bids of R465m, with the remainder being outside of the prices it accepted.

“Investor confidence was evidently impacted by the pronouncements of... (Mr) Makhura ahead of the July bond auction,” Sanral was quoted as saying.

“We wanted to raise R500m, but only received total bids of R465m (wider than current prices) and issued R275m at mark to market prices. The lack of interest was unfortunate.” - Sapa



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