The South African National Roads Agency Limited (SANRAL) has raised R1.5 billion after the inaugural auction under the Domestic Medium Term Note Programme, which carries a full guarantee from the government. It issued two new bonds with maturities in 2020 and 2034.
Overall bids received during the auction totalled R2.344 billion, while the R1.5 billion of bonds were allocated at market spreads of 0.80% over the RSA government bond benchmarks.
Including the R9.95 billion raised without a guarantee, SANRAL has now raised R11.45 billion of funding for the expansion and upgrade of toll roads, particularly the Gauteng Freeway Improvement Project, which is planned to be completed by late 2010.
It has also recently concluded a loan from the European Investment Bank which will also be used towards funding the project.
