Acsa to look for extra funds for expansion

Posted On Wednesday, 16 February 2005 02:00 Published by eProp Commercial Property News
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Acsa said yesterday it was likely to exceed its planned five-year infrastructure development budget of R3,6bn and was in discussions with its shareholders to seek additional funds

Infrastructure IndustryAirports Company SA (Acsa) said yesterday it was likely to exceed its planned five-year infrastructure development budget of R3,6bn and was in discussions with its shareholders to seek additional funds.

Acsa said SA's successful bid to host the 2010 Soccer World Cup would result in an estimated 13- million international passengers a year passing through its three international airports from 2010 - up from the current 11-million.

It said infrastructure development needed to be phased in well in advance to ensure an efficient movement of passengers and cargo.

Acsa MD Monhla Hlahla said the company could fund its capital expenditure programme by using its existing facilities, but was also "considering a capital restructure that may result in access to less expensive sources of capital".

This included a bond issue before the end of this quarter.

"We are in the process of investigating a possible capital restructuring of the company so that we can finance our infrastructure projects more efficiently, perhaps through a bond issue.

"This has the potential to save millions (of rand) for the company and the country," said Hlahla.

Last year Acsa said it was considering issuing an initial bond of between R500m to R800m to domestic institutional investors "to test the waters" of the market.

The proposed upgrades include building new multistorey parkades at the Johannesburg, Cape Town and Durban airports, redeveloping taxiways, building a new domestic terminal at the Cape Town International Airport and constructing a new apron at the Johannesburg International Airport to accommodate the new generation of wide-body long-haul aircraft.

About R400m will be spend on upgrading infrastructure in both Johannesburg and Cape Town airports to accommodate the double-deck A380 jumbo jets, expected to land in SA from 2007.

Hlahla said Acsa would continually consult airlines to determine how the planned expansions and upgrades could be augmented.

Acsa has spend R4,6bn in the past 10 years in improving infrastructure at its 10 airports.

"The process of constant improvement in facilities, matched by unwavering focus on improving operational efficiency, has been given a huge fillip by the success of the world cup bid," Hlahla said.

Last modified on Monday, 04 November 2013 12:22

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