TRANSNET has raised R6bn from South African banks at a significantly reduced cost after obtaining a guarantee for the loans from the US Export-Import Bank (Exim).CEO Brian Molefe on Monday announced the finalisation of two loan agreements for its locomotives acquisition programme.In the other deal, Export Development Canada has provided a loan of R5.24bn and Investec Bank R1.75bn, bringing the total amount raised in the two contracts concluded on Monday to R13bn.The remainder of the R23.8bn borrowing target for the financial year to end-March was raised throughout the year on the domestic capital market, Mr Molefe said in an interview."With a guarantee the cost of capital comes down quite considerably," Mr Molefe said.The funds are earmarked for the Bombardier and General Electric portions of Transnet’s purchase of 1,064 locomotives. The first ones are to become operational before the end of this year, and the last in three years’ time.China South Rail Zhuzhou Electric Locomotive an...
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