Published: July 24, 2012
Deal marks South African transport company’s first 10-year paper.
Transnet, South Africa’s state-owned freight transport and logistics company, has issued a ZAR8.3bn (US$1bn) bond.
The 10-year paper was issued on a 4% coupon, priced at 262.5 basis points over 10-year US treasuries.
This is the largest amount Transnet has raised in a single issuance without a government guarantee. The tenor is the longest yet achieved by the company in the international markets.
The proceeds will be used to modernise the company’s rail and port logistics infrastructure.
Transnet said the bond was significantly oversubscribed, but did not say by how much.