South Africa: Transnet gets $1.5 billion syndicated loan to finance its projects

South Africa: Transnet gets $1.5 billion syndicated loan to finance its projects

(Ecofin Agency) – The inadequacy of South Africa’s railway network is regularly criticized by major mining groups operating in the country, who say they are unable to meet global demand.

South African logistics group Transnet announced, in a press release published on the evening of Tuesday 12 July, that it has contracted a syndicated loan of $1.5 billion from a group of international banks to finance its projects and refinance its debts.

Transnet will use the loan to fund its expansion plans and refinance its existing debt. He explained the general group, noting that a “An important step in stabilizing its liquidity position.”

The integrated transportation and logistics company said that the first payment, amounting to $685 million, is expected by the end of next July.

Transnet had declared force majeure last April, claiming that its ability to provide rail transport services to mineral exporters was limited by a lack of locomotives, poor maintenance of trains, widespread theft of copper cables, and acts of sabotage targeting infrastructure.

The inadequacy of South Africa’s railway network is regularly criticized by major mining groups operating in the country, who say they are unable to meet global demand due to logistical difficulties.

The new syndicated loan was contracted with a banking group led by German bank Deutsche Bank. The African Finance Corporation, the African Export-Import Bank (Afreximbank) and Ahli United Bank (Bahrain) also participated in this operation.

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10/06/2022 – South Africa: Transcent and Brassa continue to face sabotage of rail infrastructure

04/27/2022 – South Africa: Transnet prepares to launch a call for bids for the construction of an LNG import terminal

10/13/2021 – South Africa: Transnet Freight Rail examines the Cookhouse – Blaney (200 km) railway concession

06/23/2021 – South Africa begins reforming Transnet

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