South Africa’s state-owned integrated freight transport company Transnet has secured a US$1.5 billion loan facility to support its sustainability programme over the next five years, group chief financial officer Nonkululeko Dlamini announced on Wednesday.
Dlamini described the facility as “a significant milestone to stabilise Transnet’s liquidity position in support of our financial sustainability.”
“The loan has been the single largest funding transaction which Transnet has been able to secure in the last seven years with the benefit of diversifying our investor base in the process,” he said.
The facility, provided by some investors, would help the company to carry out its capital expansion programme and to “refinance existing debt in line with Transnet’s corporate funding plan” for this financial year, Dlamini said.
“The confidence that these investors have demonstrated is encouraging and we continue to focus on improving the operational and financial performance of Transnet.”
According to Dlamini, the first tranche of US$685 million was scheduled to be drawdown this month.
“The transaction saw participation from a number of investors and DFIs (development finance institutions) demonstrating confidence in Transnet and expanding the company’s investor base,” he said.
He added: “The institutions included Deutsche Bank AG as global coordinator, book runner and arranger; Africa Finance Corporation as book runner and arranger; African Export-Import Bank as book runner and arranger, and Ahli United Bank as lead manager.”
NM/jn/APA