BOND MARKET
Futuregrowth to resume trading Sanral bonds
But while Sanral says the decision 'confirms' its 'high standards of governance', the asset manager is more circumspect
Asset manager Futuregrowth, which drew heavy fire from the government in 2016 after shutting its bond desk to various state-owned enterprises, will reopen trade in the South African National Roads Agency’s (Sanral’s) debt instruments. But while Sanral says Futuregrowth’s decision "confirms" the enterprise’s "high standards of governance", a statement issued by the asset manager is more circumspect. It described Sanral’s governance practices as "adequate" and said "there are areas where [it] does not believe they meet the standards required by responsible investors in public capital markets". "We are concerned that the Sanral Act and the existing governance framework have few controls to prevent a speedy degradation of governance or practices," said Futuregrowth analyst Tarryn Sankar. "Notably that the Sanral Act gives wide powers to any minister of transport to unilaterally and materially alter the board of directors." Sanral’s total debt stands at R48.8bn and its last public debt a...
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