Sanral says it’s ahead of cash targets

·4 Sep 2014

The South African National Road Agency (Sanral) held a bond auction aimed at raising R500 million, on Thursday (4 September).

The agency however, only allocated R450 million as prices were outside of guidance, but it said it remains well ahead of its forecast in terms of cash received to date.

“This is our sixth bond auction since the commencement of e-tolling in December 2013. We offered the full HWAY (guaranteed) suite of bonds. We wanted to get R500 million, but only allocated R450 million as prices were outside of guidance,” said Inge Mulder, the chief financial officer at Sanral.

“The increase in prices were expected as recent movements on SOE and government bonds were trending upwards. The total bids offered were R750 million,” said Mulder.

The next auction is scheduled for 1 October for approximately the same value.

The agency reiterated its commitment to the repayment of the debt incurred by the implementation of the Gauteng Freeway Improvement Project (GFIP).

Sanral is facing a difficult few months as the e-toll system has been called into question.

Gauteng premier, David Makhura, set up a 15 member portfolio committee to assess the socio-economic objectives of e-tolls. The group will present its findings in November.

Sanral was asked to comment on the original socio-economic objectives of e-tolls by the advisory panel looking at the system earlier this week, but spokesman Vusi Mona said Sanral would not be making representations to the panel.