Biography Of Portia Derby (Age , Husband , Net Worth) – Transnet, a leading rail, port, and pipeline company based in Johannesburg and led by South African businesswoman Portia Derby, has signed a $1.5 billion five-year senior unsecured term loan facility with a group of international lenders led by Deutsche Bank AG.
Transnet’s largest finance transaction in seven years has occurred with this deal.
Following a series of operational interruptions, the money received from the international syndicated credit market will be utilized to put the business back on track for long-term growth.
The credit facility will be utilized to support the company’s capital development program and repay existing debt in accordance with the group’s funding strategy for 2022-2023, with the initial drawing of $685 million slated for July 2022.
The deal includes involvement from development finance institutions in addition to Deutsche Bank AG, Africa Finance Corporation, and African Export-Import Bank, who served as bookrunners and arrangers for the $1.5 billion credit facility.
Transnet will have around $800 million available for withdrawal through December 31, depending on market circumstances and investor appetite. According to the transaction conditions, the facility will be returned in eight equal semi-annual payments following a 12-month grace period.
Transnet group chief financial officer Nonkululeko Dlamini stated, “This is a key milestone to stabilize Transnet’s liquidity position in support of our financial sustainability.” “These investors’ trust is reassuring, and we will continue to work on enhancing Transnet’s operational and financial performance.”
Transnet, led by Derby, operates as the custodian of ports, trains, and pipelines, facilitating the most important portion of the freight logistics chain that delivers commodities to South Africans.
The business recorded a 14% decline in hauled volumes in its most recent fiscal year due to widespread copper wire theft, poor maintenance, and a lack of locomotives, which crippled its freight rail network.
Due to a scarcity of locomotives, large-scale copper wire theft, and infrastructure damage, the South African business announced force majeure and attempted to cancel long-term coal transportation agreements about three months ago.
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