South Africa Transnet issues bonds for US$1 billion

SOUTH AFRICA's Transnet is attempting to raise up to US$1 billion on the international bond markets to finance its capital investment and expansion programme.

It is believed that the South African port, railway and pipeline operator regards the current market conditions as "being highly conducive with the South African rand very strong against the US dollar and interest rates across the world very low," reports London's Containerisation International.

It said that Transnet plans to spend ZAR95 billion (US$13.8 billion) during a five-year expansion programme that is slated to end on March 31.

Currently the group has allocated ZAR25 billion ($3.6 billion) for port projects and ZAR54.6 billion ($7.9 billion) for its railway division, with the remainder allocated to its pipelines business.
(Source:www.schednet.com)