Transnet signs R12bn loan to fund loco programme
SOUTH AFRICA: State-owned freight operator Transnet signed a R12bn club loan with five financial institutions on November 23, saying the agreements confirmed 'buoyant investor appetite'. This completes the majority of the funding required for Transnet's programme to acquire 1 064 locomotives from four manufacturers.
Transnet has raised R12bn in the open market following investor roadshows targeted at potential funders within South Africa. The 15-year loan agreements were concluded separately with each lender, but on the same commercial terms which include a 4½-year grace period while the locomotives are built.
A US$1·5bn loan facility was agreed with China Development Bank in June, and Transnet has an option to increase this to US$2·5bn as part of a memorandum of understanding between China and South Afric
|Transnet locomotive programme funding|
|Loan||Value, R bn|
|China Development Bank||30|
|Export Development Canada||6·992|
|KfW Development Bank||2·76|
|US Exim guaranteed loan||Absa, Standard Bank, Old Mutual Specialised Finance||6|
|Bank of China||3|
|Futuregrowth Asset Managers||1·5|
|Old Mutual Specialised Finance||1·5|