Finweek English Edition - - THE WEEK -

Transnet’s failed bond auc­tion on 8 May showed that liq­uid­ity may be dry­ing up in the bond mar­ket for SA’s strug­gling paras­tatals, Mon­ey­web re­ported. Transnet tried to is­sue R200m worth of bonds, but re­ceived only two bids amount­ing to R40m and agreed to only is­sue R10m, it re­ported. The paras­tatal also got hurt on pric­ing – the bonds were is­sued at a yield of 11.58%, com­pared with equiv­a­lent gov­ern­ment bonds that were trad­ing at 9.6%, Mon­ey­web said. Of the R600m Transnet has sought to raise in the three auc­tions fol­low­ing Gord­han’s ax­ing, it has raised just R55m – or 9%, it re­ported.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.