NEWS ANALYSIS: Transnet’s $6bn debt plan should worry taxpayers
The rail operator’s planned global note programme suggests it may be trying to reduce its reliance on a domestic capital market wary of lending to SOEs
30 January 2023 - 05:05
Transnet’s plan to register a $6bn (R103.32bn) global note programme may be a sign that it is trying to reduce its reliance on a local capital market that seems increasingly wary of lending to dysfunctional state-owned entities (SOEs).
That is clear from the sheer size of the mooted programme, which equates to about 81% of the R128bn debt load Transnet had at end-September 2022 (of which about R20bn is in the form of foreign bilateral lending facilities). The general rule of thumb for companies with rand-based earnings is that foreign debt should ideally not be more than 20% of their total debt...
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