Absa Capital and Vunani Capital Joint Lead Arrange SANRAL’s Inaugural Bond Issue  


Absa Capital, the investment banking division of Absa Bank Ltd, and its empowerment partner Vunani Capital, acting as joint lead managers, announced today the issuance of listed bonds, worth R2bn, on behalf of the South African Road Agency (SANRAL).

Today’s placements pave the way for regular auctions from SANRAL to finance its ongoing capital expenditure requirements.

The inaugural bond issues by SANRAL, under its newly established R10bn Domestic Medium Term Note (DMTN) Programme, will be listed on the Bond Exchange of South Africa on July 15. The programme offers SANRAL flexible funding options in the debt capital markets.

Today’s issuance comprised four bonds, including a 5-year inflation-linked bond (NR013) and three fixed rate bonds maturing in 10 years (NR018), 14 years (NR022) and 20 years (NR013) respectively. The bonds were met by strong support from the fixed income investor community.

This latest announcement of an issue by a parastatal follows similar announcements from Absa Capital earlier this year, proving that the country’s only fully local and fully global investment bank is increasingly becoming the preferred lead arranger by bond issuers. 

Notable debt issues arranged by Absa Capital over the past six months include the Development Bank of South Africa, Telkom and the City of Cape Town.

Jacques Els, Head of Bonds, Hybrids and Convertibles at Absa Capital, said that very strong market appetite for these bonds was evident with total bids amounting to just over R3bn.

“This level of subscription is indicative of investor interest in SANRAL and should bode well for forthcoming bond issues,” said Els. “Market demand for high quality parastatal paper remains strong, as was evident by the credit spreads at which the paper placed, despite a tough market environment.”

Stephen van Coller, Head of Primary Markets at Absa Capital, said he was delighted with the success of the issue.

“Absa Capital is proud to have been involved in SANRAL’s inaugural bond issue thereby supporting both the Road’s Agency and the development of South Africa’s road network,” said van Coller.


Note to the editor:

About  Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.


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