Sanral raises R500 million in bond auction
The South African National Roads Agency Limited (Sanral) says it achieved its target mandate of raising R500 million at its bond auction held on Wednesday (21 May).
A total of R1.755 billion was offered by investors, which is three and a half times over subscription, Sanral said.
The full suite of guaranteed bonds under the DMTN programme was offered and the entity tapped four of these at the auction.
“We are overwhelmed by the strong support as well as the pricing which is mostly below mark-to-market rates. We consider this a reflection of investors’ confidence in Sanral’s long term future,” said Inge Mulder, Sanral chief financial officer.
“Sanral is encouraged by the results of its latest auction and appreciates the continued support from its investors. The significant interest in the Hway34 bond, a long term fixed based bond which traded three basis points below yesterday’s market price, is testament in investors’ confidence in Sanral,” Mulder added.
The next auction is scheduled for 4 June 2014 for approximately the same value.
The agency said it is well ahead of its forecast in terms of cash received to date and this continues to encourage the investors to see the upside in Sanral bonds.
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