CITY FUNDING
Investors willing to acquire Tshwane’s bond notes, says mayor Solly Msimanga
Interested parties have indicated that they are still willing to buy the City of Tshwane’s bond notes if the metro returns to the bond market after having recently botched its first auction in five years. Tshwane mayor Solly Msimanga said on Friday: "The people who were willing to take that bond are already saying that if you want the money, we are still able to give it to you." SA’s administrative capital held a successful bond auction in June, which then had to be cancelled because the auditor-general had not issued the required letter of comfort since some of the requirements had not been adhered to. A letter of comfort provides a level of assurance that an obligation will ultimately be met. Tshwane’s foray into the market was intended to raise a 10-year bond of R1bn at a pricing 180 basis points above that of the benchmark R186 government bond. The city had received offers amounting to R2.1bn from 11 bidders. The city wanted to raise the debt to finance capital expenditure for t...
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