Sanral bond auction fail.

[Sneeky]

The SA National Roads Agency Limited (Sanral) has blamed Gauteng Premier David Makhura for the lack of interest from investors in its bond auction.

This was after Makhura announced his plan to establish a panel to review e-tolls in the province, Business Day reported today.

Sanral depended on monthly bond auctions to raise capital to fund operations, according to the report.

It has to raise between R500 million and R600 million monthly to be self-sufficient.

At yesterday’s auction, Sanral reportedly raised only R275 million out of total bids of R465 million, with the remainder being outside of the prices it accepted.

“Investor confidence was evidently impacted by the pronouncements of … [Mr] Makhura ahead of the July bond auction,” Sanral was quoted as saying.

“We wanted to raise R500 million, but only received total bids of R465 million [wider than current prices] and issued R275 million at mark to market prices. The lack of interest was unfortunate.”

City press

 

[Jola]

The fund managers that invested the R275 million should be fired.

 

[The_Unbeliever]

Yo Sanral!

Sorry to hear about your issues.

 

[Messugga]

The fund managers that invested the R275 million should be fired.

It's guaranteed by the government, so relatively low risk.

 

[grok]

The lack of interest was unfortunate.

No it wasn't

 

[FNfal]

The tragedy here is we the tax payer/road users will ultimately have to pay . 600 million a month

 

[MKFrost]

Self-sufficient by surviving on loans of R500m to R600m a month.....

 

[envo]

This should show Sanral that fund managers aren't keen on investing in them because the public talk with their wallets. Might have been a good idea in previous years, but with all the bad publicity, and the looming review on the system and the fact they're spending more than they're collecting, means there is no confidence and thus, no investment. f-u sanral

 

[AlphaBravo]

/smirks

 

[Albereth]

The tragedy here is we the tax payer/road users will ultimately have to pay . 600 million a month

Nope - what will happen is that the government will have to move budget from some projects to fund any guaranteed shortfall. This will have the greatest impact on the poor.

The poor can then decide whether they want a government that doesn't really care for them at the next election.

 

[Modeus]

Amusement followed by frustration, anger and finally then despair. Then more anger.