The 15-year concession includes eight new train sets, signalling upgrades and a digital ticketing overhaul.
The Gautrain. Picture: Neil McCartney
Standard Bank has fully underwritten the debt package supporting a R9 billion investment in the Gautrain, securing the capital structure for the system’s new 15-year public-private partnership (PPP) concession.
The financial close extends Standard Bank’s involvement nearly two decades after it financed the rail network’s initial development in January 2007.
The new debt package supports the second appointed concessionaire, Sihamba Sonke Mobility (RF) Proprietary Limited (SSM), which takes over the operation, maintenance, and comprehensive modernisation of the system for the Gauteng Provincial Government.
Standard Bank served across multiple lead roles for the transaction, acting as sole mandated lead arranger, underwriter, hedge provider, account bank, performance bond issuer, facility agent and security agent.
The modernisation programme includes:
- Rolling stock: Refurbishment of 24 existing train sets and procurement of eight new ones.
- Network infrastructure: Upgrades to signalling and communications systems.
- Digital services: A revamped ticketing platform and station upgrades.
- Energy and transport: Renewable energy initiatives and replacement of the feeder bus fleet.
Agnes Nkosi, client coverage executive vice-president for infrastructure at Standard Bank Corporate and Investment Banking, said underwriting the full debt package reflected the bank’s confidence in the Gautrain’s long-term importance and its ability to finance complex infrastructure projects.
“By combining structuring, underwriting, markets, transaction banking and agency capabilities, we have created an integrated solution that supports the resilience of the system and a substantial programme of modernisation,” she said.
Gautrain’s role in Gauteng
Since launching commercial services in 2010, the Gautrain has connected Pretoria, Johannesburg, Sandton and OR Tambo International Airport, serving as a key transport link between the province’s economic centres.
Nkosi said the investment would help the network meet growing demand for efficient, reliable and lower-carbon transport.
“Having helped fund the system’s original development, Standard Bank is proud to back the investment that will define its next chapter,” she said.
This article was republished from Moneyweb. Read the original here.
