Financial position? Dire, IMO.
Sanral is currently embarking on a new capital raising roadshow, to raise a further R9bn, on top of the R41bn they already owe. They plan to borrow around R500m per month for the foreseeable future, in our names as taxpayers. What are they using this debt for? To begin to fund phase 2 of the GFIP (which will cost in excess of R40bn, taking their total debt to close to R100bn) and to service their existing debt. Yes, they are taking on more debt now, to repay debt they took out to finance GFIP phase 1.
In addition, they have requested further treasury assistance to repay another debt that matures in April. They simply don't have the funds to repay this debt.
Why are they doing this? Because some people have caved and are paying their e-tolls, without realising that the consequence is that they'll now have to start forking out far, far more money. People don't realise that this was only phase 1 of a 3 phase project.
Inge Mulder, Sanral's CFO, has stated that they will only raise debt in their HWAY programme, as this is government guaranteed. This is because investors are not interested in touching any debt that is not government guaranteed. Let me explain the difference here - Sanral's HWAY bonds are government guaranteed. Their NRA bonds are not. Their NRA bonds however are the bonds that have matured, and are maturing (meaning they now have to repay them), and these are the bonds that Treasury has bailed them out with. Treasury has paid for these bonds, so effectively Treasury has already bailed them out, and irrespective of them not being government guaranteed, they are paying for them. We are paying for them. Government now needs to find that money, from tax revenue! In addition, Sanral have accepted this cash as a loan, so it only places them further in debt. They refuse to disclose the details of this loan though, as in whether it is actually repayable and what the terms and duration are. In other words, this is a gift - a bailout!
Another interesting fact is that even on their investor roadshows that they're about to embark on, they will not disclose compliance rates! Why not?!
This is because they have been lying to us about how much it is actually costing the average road user, and lying to us by inferring that e-tag sales correlate with compliance. It doesn't whatsoever.
So questions must be asked of ourselves - do you honestly want to see an additional R40bn to R50bn taken out in your name? Do you honestly want phase 2 to go ahead? Is any of this in your best interests? Can you afford to start repaying this new debt they're taking out in your name, as well as the old R41bn debt that's sitting on their books? Do you want to support continued government bailouts of Sanral?
If you'd like to know what this whole project should have cost, see this thread - http://mybroadband.co.za/vb/showthread.php/594711-What-E-Tolling-should-have-cost-South-Africans
It will open your eyes to the shafting that is being handed out to us. And the further shafting that is about to happen now, as Sanral begin to take on more debt to get phase 2 under way...
Sanral is currently embarking on a new capital raising roadshow, to raise a further R9bn, on top of the R41bn they already owe. They plan to borrow around R500m per month for the foreseeable future, in our names as taxpayers. What are they using this debt for? To begin to fund phase 2 of the GFIP (which will cost in excess of R40bn, taking their total debt to close to R100bn) and to service their existing debt. Yes, they are taking on more debt now, to repay debt they took out to finance GFIP phase 1.
In addition, they have requested further treasury assistance to repay another debt that matures in April. They simply don't have the funds to repay this debt.
Why are they doing this? Because some people have caved and are paying their e-tolls, without realising that the consequence is that they'll now have to start forking out far, far more money. People don't realise that this was only phase 1 of a 3 phase project.
Inge Mulder, Sanral's CFO, has stated that they will only raise debt in their HWAY programme, as this is government guaranteed. This is because investors are not interested in touching any debt that is not government guaranteed. Let me explain the difference here - Sanral's HWAY bonds are government guaranteed. Their NRA bonds are not. Their NRA bonds however are the bonds that have matured, and are maturing (meaning they now have to repay them), and these are the bonds that Treasury has bailed them out with. Treasury has paid for these bonds, so effectively Treasury has already bailed them out, and irrespective of them not being government guaranteed, they are paying for them. We are paying for them. Government now needs to find that money, from tax revenue! In addition, Sanral have accepted this cash as a loan, so it only places them further in debt. They refuse to disclose the details of this loan though, as in whether it is actually repayable and what the terms and duration are. In other words, this is a gift - a bailout!
Another interesting fact is that even on their investor roadshows that they're about to embark on, they will not disclose compliance rates! Why not?!
This is because they have been lying to us about how much it is actually costing the average road user, and lying to us by inferring that e-tag sales correlate with compliance. It doesn't whatsoever.
So questions must be asked of ourselves - do you honestly want to see an additional R40bn to R50bn taken out in your name? Do you honestly want phase 2 to go ahead? Is any of this in your best interests? Can you afford to start repaying this new debt they're taking out in your name, as well as the old R41bn debt that's sitting on their books? Do you want to support continued government bailouts of Sanral?
If you'd like to know what this whole project should have cost, see this thread - http://mybroadband.co.za/vb/showthread.php/594711-What-E-Tolling-should-have-cost-South-Africans
It will open your eyes to the shafting that is being handed out to us. And the further shafting that is about to happen now, as Sanral begin to take on more debt to get phase 2 under way...
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