City Investor Relations TO find out more about how to invest in the City's various municipal bonds click here. RELATED LINKS: City to launch new bond Johannesburg is to issue a fourth municipal bond, with the funds raised being used to defray capital expenditure costs. Read more Joburg launches R700-million bond The first bond to be issued by the City of Johannesburg under a pioneering public borrowing programme showed investor confidence, being 3,8 times over subscribed. Read more Joburg appoints bond advisers to raise R6-billion Seven banks will oversee the City's programme to raise funds through bond issues over the next five years. The issues are guaranteed success as the underwriters will buy whatever is not snapped up by the market. Read more Top prize for Joburg bond The word "COJO1" probably won't mean much to those who are not in the know. But for the City of Johannesburg, it symbolises something to be very proud of indeed. Read more Market shows big appetite for Joburg bonds Market interest in the second municipal bond was better than expected when the partially guaranteed R1bn bond was placed on auction. This follows the successful issue of Joburg's first bond in April Read more Joburg's credit rating remains stable South Africa's only locally owned credit ratings agency CA-Ratings has affirmed the credit ratings of City of Joburg at zaA (long-term), zaA2 (short-term) and the rating outlook remains stable. Read PDF document Celebrations as investors snap up Joburg bond Joburg's launch of the first municipal bond under new legislation received an overwhelmingly positive response from the market as investors jostled to get a piece of the cake Read more Joburg forges ahead with bond issue The City of Johannesburg on Wednesday signed an agreement with its bond advisor, a consortium comprising Barclays Bank PLC, African Harvest Capital and Ernst & Young Corporate Finance, signalling its determination to introduce a municipal bond in the new year Read more Joburg announces plans to issue municipal bond In what could be a first for a South African city, the City of Johannesburg is to investigate the possibility of issuing municipal bonds. Read more

City of Johannesburg's bond issue JOHANNESBURG has, since 2004, successfully launched four municipal bonds.With the executive mayor, Amos Masondo, hailing the launch in April 2004 as an “historic moment”, the first bond received an overwhelming, positive response. The bonds, all listed on the Bond Exchange of South Africa, are: CoJ 01 - A R1-billion, unsecured bond maturing in six years. Launched in 2004, it won the coveted Bond of the Year Award from Besa in that year. CoJ 02 - A R1-billion, partially guaranteed bond maturing after 12 years. It is partially secured by the International Finance Corporation and the Development Bank of Southern Africa. It was issued in June 2004. CoJ 03 - A R700-million, unsecured bond maturing after eight years of issue. It was the first to be issued as part of the City's Domestic Medium Term Note programme. It was issued in April 2005. CoJ 04 - A R1,2-billion, unsecured bond maturing in 12 years from issue and the second to be issued as part of the Domestic Medium Term Note programme. It was issued in May 2006. The Domestic Medium Term Note programme allows the City to issue up to R6-billion in municipal bonds up to 2010, without having to provide additional documentation ahead of each new issue. Municipal bonds are debt obligations issued by government entities to members of the public to generate income to meet capital expenditure. The issuer of the bond guarantees to pay interest (coupons) at set periods and to repay the principal debt on a specified date. The interest paid on the bond in tax deductible. Issuing bonds is standard practice for cities in the developed world. Johannesburg is rated by both local and multinational credit agencies. Improved credit ratings help reduce debt servicing costs as a percentage of overall expenditure. Joburg uses most of the funds raised by the bond issues to finance its capital expenditure backlog. The City's capital expenditure backlog is estimated at R8-billion. At the budget presentation for the 2006-7 financial year, the City of Johannesburg announced it is to spend in the region of R14-billion on capital expenditure projects over the next five-year period. Offering circular for the first bond The City of Johannesburg has issued an offering circular for its R1bn municipal bond. This circular does not constitute an offer to sell or a solicitation for an offer to buy the bonds. Click here to read the PDF document Offering circular for the second bond The City of Johannesburg has issued an offering circular for its second R1bn municipal bond. This circular does not constitute an offer to sell or a solicitation for an offer to buy the bonds. Cover (In PDF format) Circular (In PDF format) Jozibonds Known as Jozibonds, the City's retail bonds are savings products that give private individuals, trusts, stokvels, close corporations, companies and other legal entities an opportunity to invest in municipal-issued securities at competitive and market related interest rates. Read more Permission to use web site material Publishers may use material from this site free of charge, as long as: Credit is given to either the "City of Johannesburg website (www.joburg.org.za)" or to "Johannesburg News Agency (www.joburg.org.za)"; If the article is used online, a link is provided to the original article on this website; The name of the article's author is acknowledged; The webmaster is informed of how and where the material is used (fill in this brief online form). Johannesburg News Agency is operated by BIG Media at 011-484-1400 Print this Page E-mail this article to a friend Help using Joburg.org.za