Transnet Bonds Jump on South Africa’s $5.3 Billion of Guarantees
Trucks at the Port of Cape Town, operated by Transnet National Ports Authority.
Photographer: Photographer: Dwayne Senior/BloombergTransnet SOC Ltd.’s bonds rallied after South Africa’s government approved billions of dollars in guarantees to further support the debt-laden state-owned rail and port operator.
The 94.8 billion-rand ($5.3 billion) allocation includes 48.6 billion rand to ensure all of the company’s debt redemptions will be covered over the next five years, the Department of Transport said in a statement on Sunday. The rest will go toward mitigating the risks of credit-ratings downgrades, it said.