South Africa SOEs: Transnet State Bailout; Spare-Parts Deal

South African ports and rail operator Transnet SOC Ltd. may not need a bailout from the government if it leverages its state guarantee to raise funding, National Treasury Director-General Duncan Pieterse said.

The company last week signed a 5 billion rand ($280 million) loan agreement with the New Development Bank, the first part of an 18 billion rand program that the BRICS lender has approved for Transnet.

“It is not necessarily the case that Transnet will require any equity support from the government if they continue to leverage the guarantee to access the funding they require from the NDB and ...