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
LoanValue, 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
Club loan Absa 3
Nedbank 3
Bank of China 3
Futuregrowth Asset Managers 1·5
Old Mutual Specialised Finance 1·5