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SA rail firm Transnet gets $5bn loan from China
March 27, 2013, 8:59 am


Transnet announced last year a $32.4 billion development plan for South Africa for seven years [AP]

South Africa’s freight rail company Transnet and China Development Bank have signed a agreement on financing upgrades at rail and port networks, Transnet said on Tuesday.

The China Development Bank Corp. agreed to lend Transnet $5 billion to support the country’s infrastructure development.

The “financial and non-financial assistance” will run over five years.

Transnet had in 2012 announced a $32.4 billion development plan for South Africa for seven years.

Transnet group chief executive Brian Molefe said: “This historic agreement between two state-owned entities within Brics illustrates the opportunities inherent in such diplomatic ties.

“The agreement will enable us to explore innovative funding options as we pursue our borrowing plan, focusing on cost-effective solutions and diversity.”

The agreement is one of the various country-to-country collaboration agreements intended to strengthen economic and trade relations among the BRICS countries – Brazil, Russia, India, China and South Africa.

About two-thirds of the required funding will be raised from internal resources, while the remainder will be raised through various sources in the debt capital markets.

The BRICS Post