Following a decision by the Western Cape High Court SANRAL, on the advice of its legal representatives, lodged its application for leave to appeal to the Constitutional Court. The project is more than a decade in the making. It was conceived to improve the link between the Western Cape and the rest of the country, and is a strategic infrastructure project necessary to sustain and develop the Western Cape economy and bring significant economic development.

SANRAL was placed under review by credit rating agency, Moody’s, in September. Issues outside of SANRAL’s control has forced the review, such as FutureGrowth’s stated aversion to investment in state-owned enterprises and pronouncements by detractors which is causing motorists to disobey the laws of the country and contribute to a lower level of cash receipts from e-tolls. SANRAL is confident that it can overturn the review as it manages two portfolios: toll and non-toll. The toll portfolio is less than 15% of SANRAL’s total portfolio, is managed as a global portfolio and does not separate specific toll routes for project financing.

The bond auction was held on 14 September. Total bids of more than R1. 7 billion were received which meant it was more than three times oversubscribed. Of this, R988 million was allocated on bond HWS09 at a spread of 143 basis points. The success of the auction means that SANRAL’s Going Concern status is intact.