22 April, 2005 Press Release Joburg Successfully Launches R700 million Municipal Bond The City of Johannesburg successfully launched a R700million municipal bond today, the first municipal bond under its 6bn Domestic Medium Term Note (DMTN) Programme. The issue was 3.8 times subscribed and the bonds cleared at 154bps above the benchmark of R157. The bond has a tenor of 8 years and effectively extends the ability to issue bonds without Government or third party guarantees. Details of the bond are as follows: Redemption date: 2013 Principal amount: R700m Coupon dates: 6 monthly Listing : BESA: 26 April 2005 Bond code: COJ03 Issue spread: 154 Member of the Mayoral Committee for Finance Strategy and Economic Development, Parks Tau said, "Proceeds of the bond will be used for capital expenditure to address infrastructure backlogs". City Treasurer Jason Ngobeni added that the intention of the City is to issue up to 30 years to match the asset life of its infrastructure investments. Tau said, "The confidence shown by investors in the City is welcome and should encourage other municipalities to use the capital markets for infrastructure financing". Barclays, Absa and Vunani Capital managed the issue. For more information contact William Mathamela on (011) 242 1040. Ends Nthatisi Modingoane Media Liaison Officer CITY OF JOHANNESBURG Tel: (011) 407 7354 Fax: 403 3494 Cell: 082 467 9228 E-mail: nthatisem@joburg.org.za