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