Sanral raises R500 million in a successful oversubscribed bond auction

Sanral yesterday held a successful bond auction aimed at raising R500 million, said Inge Mulder, the Chief Financial Officer at Sanral.

"This is our first bond auction since the commencement of e-tolling in December 2013 and the auction settles at T+3. We offered the full HWAY (guaranteed) suite of bonds. We wanted to get R500 million, which is what we allocated, all within the price guidance that was provided by the arrangers. The total bids offered were R956 million," said Mulder.

The R500 million was allocated as follows:

Hway20: R105mn @ 55bpsHway23: R66mn @ 29bps (CPI linked)Hway24: R14mn @ 30bps (CPI linked)Hway34: R315mn @ 68bps

"Sanral is encouraged by the results of its latest auction and appreciates the continued support from its investors," Mulder added.

The next auction is scheduled for 21 May for approximately the same value.

The agency reiterates its commitment to the repayment of the debt incurred to implement the Gauteng Freeway Improvement Project (GFIP).

The agency is well ahead of its forecast in terms of cash received to date and this had encouraged the investors to see the upside in Sanral bonds following an investor roadshow held earlier this month.

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