CFO Nonkululeko Dlamini says it is the single largest funding transaction in seven years.
State-owned entity Transnet has signed a five-year credit facility, for R25.5 billion, marking its first internationally syndicated loan in almost a decade.
Group CFO Nonkululeko Dlamini said, “This [transaction] is a significant milestone to stabilise Transnet’s liquidity position in support of our financial sustainability. It has been the single largest funding transaction which Transnet has been able to secure in the last seven years with the benefit of diversifying our investor base in the process.”
“The confidence that these investors have demonstrated is encouraging and we continue to focus on improving the operational and financial performance of Transnet.”
The port and rail enterprise said the new credit facility is part of its 2022/2023 funding plan, with the funds earmarked for infrastructure capex and to refinance existing debt.
According to the JSE notice, funding institutions included Deutsche Bank AG as global co-ordinator, bookrunner and arranger, Africa Finance Corporation as bookrunner and arranger, African Export-Import Bank as bookrunner and arranger, and Ahli United Bank as lead manager.
According to Transnet, the first drawdown amounting to R11,657.33 million is scheduled for July 2022.
The facility is structured to be repaid in eight equal semi-annual instalments after a 12-month grace period. There is an accordion feature in the transaction for up to $1.5 billion [R25,53 billion], subject to Transnet’s consent until December 2022.
“Given the accordion feature, Transnet will have approximately $800 million [R13,614.40 million] available for drawdown up until 31 December 2022, subject to market conditions and investor appetite,” the group added.