TRANSNET CONFIDENT ABOUT ITS CAPEX PLAN
Posted on 21 May 2009
Despite the global financial situation, Transnet is confident it can complete its multi-billion-Rand investment plan on time, Business Day reports. “At least for now, money for its gigantic projects seems to be coming in thick and fast. Yet Transnet remains careful about striking a balance between raising capital and keeping the costs of borrowing low. The group has raised capital from commercial banks, bond investors, development banks and export credit agencies. Rosa Ferreira, a credit analyst at Moody’s, says Transnet aims to optimise its funding costs by tapping into the cheapest funding financial option available at any time. After raising a R4bn loan from Japan Bank for International Co-operation last month, Transnet acting CEO Chris Wells said the loan was less than the weighed average cost of the parastatal’s debt and was below 12%. Also last month, Wells said the R5.7bn loan which Transnet had secured from several banks had been concluded at ‘competitive interest rates”’.
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