The state-owned rail and port utility has nearly secured all its funding requirements until March 2021, despite ratings agencies’ misgivings
A loading crane straddles a freight rail track at Transnet's container handling terminal at City Deep inland port in Johannesburg. Picture: BLOOMBERGSA’s state-owned rail and port utility’sThis was despite the view of ratings agency Moody’s Investors Services, which recently downgraded Transnet’s outlook from stable to negative while keeping its investment grade credit rating.
In 2017, at the height of state capture, the investor community placed an embargo on trading in Transnet bonds due to their unhappiness over various governance issues. On Monday, an auction was conducted for R250m for bonds with maturity dates of 2030 and 2040, which was more than three-times oversubscribed. Bids were received for R790m. Also this month, Transnet signed a rand-based loan agreement with a German bank and is negotiating funding with local banks.
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