South Africa 3.7.2014 07:57 am

Sanral blames premier for lacklustre bond auction – report

FILE PICTURE: Gauteng premier David Makhura. Picture: Werner Beukes/SAPA

FILE PICTURE: Gauteng premier David Makhura. Picture: Werner Beukes/SAPA

The SA National Roads Agency Limited (Sanral) blamed Gauteng premier David Makhura for the lack of interest from investors in its bond auction.

This was after Makhura announced his plan to establish a panel to review e-tolls in the province, Business Day reported on Thursday.

Sanral depended on monthly bond auctions to raise capital to fund operations, according to the report.

It has to raise between R500 million and R600m monthly to be self sufficient.

At Wednesday’s auction, Sanral reportedly raised only R275m out of total bids of R465m, with the remainder being outside of the prices it accepted.

“Investor confidence was evidently impacted by the pronouncements of… (Mr) Makhura ahead of the July bond auction,” Sanral was quoted as saying.

“We wanted to raise R500m, but only received total bids of R465m (wider than current prices) and issued R275m at mark to market prices. The lack of interest was unfortunate.”

– Sapa

 

The Citizen Trail Run 2018

today in print