Question mark hovers over bond issues in SA
Ratings downgrade knocks wind out of lively first quarter, as Sanral joins corporates in postponing auction
The South African National Roads Agency (Sanral) has delayed its return to the bond market amid concern that it would struggle to attract investors after SA’s sovereign credit-ratings downgrades. The agency had planned to approach the bond market in April but elected to postpone a debt issue following the sovereign’s downgrade to subinvestment grade by S&P Global Ratings and Fitch, it said on Wednesday. The announcement comes as Transnet raised only R20m of a planned R200m on April 10 by tapping existing bonds. Transnet raised R300m in March by tapping existing issues, said Elena Ilkova, credit analyst at RMB global markets. The Development Bank of Southern Africa and the Land Bank were among other state-owned enterprises that had successful private placements in the first quarter, she said. The downgrade would have a significant effect on state-owned enterprises (SOEs), said Wafeeqah Mallick, credit analyst at Futuregrowth Asset Management. "Many rely on government finances for cap...
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