JOHANNESBURG, Feb 5– The South African National Roads Agency (Sanral) has failed to raise a targeted 600 million Rand (about 51.6 million US dollars) during Wednesday’s bond auction in Pretoria as a result of continuous uncertainty regarding its electronic collection system (e-tolls) and the recent change in outlook by international ratings agency Moody’s from stable to negative.
Sanral’s Chief Financial Officer, Inge Muller, said Wednesday there was a real possibility that if the agency was unable to service its debt, investors would demand repayment of the full debt of 42 billion Rand.
Mulder said Sanral managed to raise 400 million Rand at the bond auction.
“First, there’s the issue of the certainty or the uncertainty. So, if Sanral is not able to get the certainty and the certainty is not convincingly communicated to the public, it will put additional pressure on Sanral’s toll portfolio,” she added.
“If Sanral is unable to raise the funds — as you know we’ve got a government guarantee — it means that investors can at any time call on that guarantee in which case the government has to pay investors.”