The South African National Roads Agency Limited (SANRAL) in its third auction for 2010 raised R1 billion under its Domestic Medium Term Note Programme carrying a full guarantee from the Government of the Republic of South Africa, by tapping into its HWAY20 bond.

Despite the truncated trading week, there was strong interest with bids received during the auction totaling R1.053 billion. R1 billion of bonds were allocated at market spreads of 0.54% over the RSA Government benchmark.

Including the R9.95 billion raised without a guarantee, SANRAL has now raised R16.9 billion of funding for the expansion and upgrade of toll roads, particularly the Gauteng Freeway Improvement Project which is planned to be substantially completed before the 2010 FIFA World Cup.

Absa Capital and Rand Merchant Bank are appointed as Joint Lead Arrangers and Market Makers on SANRAL's JSE listed Domestic Medium Term Note Programme.

Source: I-Net Bridge