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).<\/p>\n
A total of R1.755 billion was offered by investors, which is three and a half times over subscription,\u00a0 Sanral said.<\/p>\n
The full suite of guaranteed bonds under the DMTN programme was offered and the entity tapped four of these at the auction.<\/p>\n
\u201cWe 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\u2019 confidence in Sanral\u2019s long term future,\u201d said Inge Mulder, Sanral chief financial officer.<\/p>\n
\u201cSanral 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\u2019s market price, is testament in investors\u2019 confidence in Sanral,\u201d Mulder added.<\/p>\n
The next auction is scheduled for 4 June 2014 for approximately the same value.<\/p>\n
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\u00a0Sanral bonds.<\/p>\n
Who\u2019s paying for e-tolls?<\/a><\/strong><\/p>\n Sanral satisfied with 9% e-toll collection<\/strong><\/a><\/p>\n