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South Africa: Rand Water Raises R1.7 Billion in Capital Markets

south africa rand water raises r1 7 billion in capital markets
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Minister of Human Settlements, Water and Sanitation, Lindiwe Sisulu, has congratulated Rand Water for successfully arranging an auction of just over R1.7 billion in senior and sustainability-linked notes, attracting over R4.5 billion in capital market bids.

In a statement on Thursday, the Ministry of Human Settlements, Water and Sanitation said the auction comes when the capital markets are considered closed for funding of state-owned companies (SOC), making this a remarkable milestone in the sector.

Additionally, the issuance of two sustainability-linked bonds (SLBs) makes Rand Water the first state-owned entity on the African continent to issue an SLB. This is also the single largest ZAR denominated SLB to be issued.

Sisulu has encouraged Rand Water to use the proceeds of the bonds to assist the government in its efforts to revive the economy by ensuring water security for all, including small-scale farmers, black industrialists and rural households in its area of operation.

“If we set goals and commit to good governance, nothing will stop our institutions from getting international recognition. This will enable us to deliver on our vision 2030, which seeks to ensure we have access to affordable, reliable and safe water and hygienic sanitation,” the Minister said.

Sisulu said the interest and oversubscription of the Rand Water bonds is a clear indication that the market has confidence in the management and employees of Rand Water.

Rand Water is an entity of the Department of Water and Sanitation.