The City of Johannesburg's Metro Centre in Braamfontein

RELATED LINKS: Joburg appoints bond lead managers The city's fourth municipal bond is a step closer, with the appointment of Standard Bank as the lead manager and adviser for the issue. Read more Joburg shares expertise with other cities AFTER successfully issuing three municipal bonds, with a fourth on the horizon, Johannesburg hosted a conference to share its knowledge with other South African municipalities. Read more Doing a good job of selling the City THE head of the Joburg's new investor relations unit is up for a challenge, and believes she has got what it takes to put the sparkle in the city of gold. Read more Joburg appoints bond advisers to raise R6bn 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 City of Johannesburg's bond issue THE launch of the first municipal bond in South Africa under new legislation received an overwhelmingly positive response from the market when it was launched in April 2004. Pegged at R1-billion, the bond is not guaranteed by the government nor secured by City assets. Read more Joburg to borrow R320m THE City is planning to take out a long-term loan of R320-million from a French agency to finance the installation of water meters in Soweto. Read more Masondo upbeat on City's future LOOKING to past achievements and future challenges, in his State of the City address Executive Mayor Amos Masondo was confident Johannesburg was on a successful growth path. Read more

City to launch new bond Johannesburg is to issue a fourth municipal bond, with the funds raised being used to defray capital expenditure costs. May 3, 2006 By Anish Abraham IN its efforts to diversify sources of affordable funding, the City of Johannesburg is to issue its fourth municipal bond by the end of May. The R1,2-billion unsecured bond is the second to be issued as part of the City's Domestic Medium Term Note programme, under which it aims to raise R6-billion. The City is required to give notice of acquiring any long-term debt, in terms of the Municipal Finance Management Act (Act No. 56 of 2003) and the Municipal Systems Act (Act No. 32 of 2000). Funds raised from the bond issue will be used to defray capital expenditure costs, according to William Mathamela, head of dealing in the treasury department. Several details about the bond - such as the maturity date and interest rate - will only be finalised on the date of the issue. At present the City is looking at maturity between seven and 20 years. "Coupon (interest) will be payable semi-annually in arrears and capital will be payable on maturity date," Mathamela said. "The interest will be calculated at a fixed rate and will be determined on the date of intended issue of the bond." The total cost of the debt over the repayment period can only be determined on the date of the book build, either on 24 or 31 May, when the interest rate applicable to the bond will be set. The City hopes that by establishing itself in the bond market, it will be able to raise funds at more affordable rates in the future. The City of Johannesburg has three bonds listed on the Bond Exchange of South Africa: CoJ 01, an unenhanced R1-billion bond maturing in six years; CoJ 02, a partially guaranteed R1-billion bond maturing in 12 years; and CoJ 03, a R700-million bond maturing in eight years. The third bond was over-subscribed nearly four times, with investors bidding R2,6-billion on the R700-million bond. While the first two were issued as standalone bonds, the CoJ 03 was issued as part of the City's R6-billion Domestic Medium Term Note Programme, which was launched on 26 April 2005. In April Johannesburg hosted a conference on municipal bonds, persuading other metros to look into bond issues as a means of raising finance. 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