SANRAL was placed under review by credit rating agency, Moody’s, in September. Issues outside of SANRAL’s control has forced the review, such as FutureGrowth’s stated aversion to investment in state-owned enterprises and pronouncements by detractors which is causing motorists to disobey the laws of the country and contribute to a lower level of cash receipts from e-tolls. SANRAL is confident that it can overturn the review as it manages two portfolios: toll and non-toll. The toll portfolio is less than 15% of SANRAL’s total portfolio, is managed as a global portfolio and does not separate specific toll routes for project financing.
The bond auction was held on 14 September. Total bids of more than R1. 7 billion were received which meant it was more than three times oversubscribed. Of this, R988 million was allocated on bond HWS09 at a spread of 143 basis points. The success of the auction means that SANRAL’s Going Concern status is intact.