Successful SANRAL bond auction ensures road agency remains on track in serving South Africans

The South African National Road Agency (SANRAL) today held a bond auction aimed at raising R500 million, said Inge Mulder, Chief Financial Officer at SANRAL.

"This is our sixth bond auction since the commencement of e-tolling in December 2013. We offered the full HWAY (guaranteed) suite of bonds. We wanted to get R500 million, but only allocated R450 million as prices were outside of guidance. The increase in prices were expected as recent movements on SOE and government bonds were trending upwards. The total bids offered were R750 million," said Mulder.

The R450 million was allocated as follows:

Hway20: R300 mn @ 60bps (price guidance 55bps)Hway23: R100 mn @ 31bps (CPI linked) (price guidance 28bps)Hway34: R50 mn @ 73bps (price guidance 71bps)

"SANRAL is encouraged by the results of its latest auction and appreciates the continued support from its investors, despite the current climate of uncertainty, as well as limited liquidity due to the situation with ABIL," Mulder added.

The next auction is scheduled for 1 October for approximately the same value.

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

The agency remains well ahead of its forecast in terms of cash received to date.