Investor appetite for the Trans Caledon Tunnel Authority’s (TCTA’s) debt is good, says acting CEO Leonard Radzuma, despite the looming possibility of rating agency downgrades of SA’s sovereign debt. The state-owned TCTA is a specialised liability management body, which finances and implements bulk raw water infrastructure in SA. It provides raw water to water boards, including to the Vaal River system and Gauteng via the Lesotho Highlands Water Scheme. Radzuma said on Thursday the TCTA would seek new debt in the commercial market to fund projects, including infrastructure projects in the Western Cape and the second phase of acid mine drainage mitigation in Mpumalanga. He acknowledged the increased risk and associated success rate of future bond issues in light of ratings agencies downgrading SA, but, he said, the TCTA had a good reputation for honouring its debt. Announcing the authority’s annual report for the year to March 2017, he said the TCTA had again received an unqualified r...
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