Nedbank, Transnet agree on R1.1bn loan

2013-09-11 15:02

Nedbank and Transnet have signed a R1.1 billion loan agreement for diesel locomotives.

Transnet had reached the agreement with the bank with the help of a guarantee from the US government-owned export credit agency, Ex-Im, Transnet group CEO Brian Molefe said today.

“This is further evidence of the successful implementation of our funding strategy, as the transaction lowers our cost of debt and diversifies our funding sources,” Molefe said in Johannesburg, ahead of the signing.

“The agreement is a significant milestone for us and confirms that despite the prevailing debt capital market conditions, Transnet is on track ... to realise its funding objectives.”

He said Transnet’s projects remained bankable and attractive to local and international investors.

The funding was for 53 of 143 diesel locomotives built by Transnet with General Electric at Transnet’s manufacturing facilities in Koedoespoort, east of Pretoria.

Molefe said Transnet delivered all 143 locomotives three months ahead of schedule.

The funding for a first batch of 43 locomotives was concluded previously, as was that for a second batch of 47. The agreement today was for the remaining 53 locomotives.

In April last year, Transnet launched its market demand strategy, a R307 billion capital-investment programme for the next seven years.

Molefe said the first year had been successful, with investment of more than R27 billion in South Africa’s transport infrastructure.

“Last year we raised R14.6 billion and, during the current year, we are targeting to raise R15.6 billion from a range of sources,” he said.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


WATCH: Man films himself going down water slide upside down as things go very wrong…

What is at first an exciting tummy-turning adventure stunt, quickly turns into a scarily bad idea caught on camera. Take a look:


You won't want to miss...

WATCH: Conor McGregor: Notorious the trailer
Best date night restaurants in South Africa
WATCH: Ryan Reynolds offers fans a free tattoo in new Deadpool 2 teaser
Should you date your co-worker?
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.