- This topic is empty.
Viewing 1 post (of 1 total)
-
Posts
-
Last week, the NDB raised R1.5 billion ($94 million) at its first-ever South African bond auction.
The bank received more than R2.5 billion in bids for the three- and five-year bonds, enabling it to increase the size of the deal.
In a statement, the bank said it allocated 71% to institutional investors and the rest to local banks in the sale on Tuesday, 15 August.
“NDB is seeking to increase its presence in the local capital markets of its member countries to fund its robust portfolio of local currency loans,” said NDB CFO and vice-president Leslie Maasdorp.
“The proceeds will be used to fund infrastructure and sustainable development projects in South Africa.”
Maasdorp has previously said the bank wants to increase its lending in the local currencies of its members, and the bond sale is part of this aim.
He reiterated the bank’s commitment to helping South Africa address its electricity shortfalls by investing in renewable generation projects.
The bank has assisted South African state-owned enterprises, such as Eskom, with financing and Independent Power Producers through the Development Bank of Southern Africa and the Industrial Development Corporation.
“Currently, our big focus is on energy and helping the country recover from the energy crisis”, Maasdorp said.
However, he said existing projects the bank has invested in would take some time before they contribute energy to the grid.
This is due to the need for Eskom to upgrade its grid significantly to enable renewable projects to connect to its transmission network.
The bank has recognised that it will have to deploy capital to fund the upgrading of the grid.
“We need to put more resources into upgrading the grid,” Maasdorp said. “It is an area we hope to play a bigger role in.”
source:BRICS Bank considers loan to save Transnet – Daily Investor
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.