Transnet raises R12bn loan

Transnet has signed a R12-
billion club loan with five
local and global financial
institutions to help fund its
ambitious 1064 locomotive
acquisition programme
worth a total of R50bn.
“We are now just R2m
short of the required
R50bn worth of funding,”
said Transnet acting CEO,
Siyabonga Gama, noting that
the funders – Absa Bank;
the Nedbank Group; Bank of
China; Futuregrowth Asset
Managers; and Old Mutual
Specialised Finance – had
agreed to a term of 15 years
at “competitive rates”.
Gama told FTW on the
sidelines of the signing
ceremony on Monday that
despite the challenges of a
sluggish economy, Transnet
was still committed to
investing in equipment and
infrastructure as part of its
Market Demand Strategy
(MDS).
“It is true that when we
created the MDS, South
Africa’s gross domestic
product (GDP) was
projected to growth by over
5% year-on-year. That has
now slipped to between
1.5% to 2%. However, we
still need to improve our
logistics and supply chain
efficiencies to be able to
improve our global trade
competitiveness, so we have
to move forward with our
investments,” said Gama.
CAPTION
Signing on the dotted line … Gavin Bouwer, senior vice
president Bank of China, (left) and Siyabonga Gama. Photo: Adele Mackenzie