LONDON - Transnet, the South African state-owned freight transport and logistics company, plans to raise $2 billion from foreign bond sales to help finance infrastructure projects.
The company, which operates ports, railways and pipelines, has set up a medium-term loan program on the London Stock Exchange to issue notes and bonds in European and U.S. debt capital markets.
The Johannesburg-based firm said the bonds will help it diversify its funding sources and add to its $3.9 billion domestic debt program.
Transnet said it is the first South African state-owned company in recent years to tap international markets without an "explicit" government guarantee.
The company said earlier in the month that it will likely spend around $12.5 billion expanding port and rail capacity and building new pipelines over the next five years to keep pace with rising demand in Africa's biggest economy.
Transnet's major projects include expansion of the Cape Town Container Terminal, widening the entrance channel at the Port of Durban and the Ngqura port and container terminal.
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