Lindiwe Sisulu, the Minister of Human Settlements, Water and Sanitation, congratulated Rand Water on successfully arranging an auction of slightly over R1.7 billion in senior and sustainability-linked notes, which attracted over R4.5 billion in capital market offers.
The Ministry of Human Settlements, Water and Sanitation stated in a statement on Thursday that the auction takes place at a time when the capital markets are deemed closed for funding state-owned companies (SOC), making it a significant milestone in the industry.
Additionally, the issuance of two sustainability-linked bonds (SLBs) makes Rand Water the first state-owned entity on the African continent to issue an SLB. This is also the single largest ZAR denominated SLB to be issued.
Sisulu has encouraged Rand Water to use the proceeds of the bonds to assist the government in its efforts to revive the economy by ensuring water security for all, including small-scale farmers, black industrialists and rural households in its area of operation.
“If we set goals and commit to good governance, nothing will stop our institutions from getting international recognition. This will enable us to deliver on our vision 2030, which seeks to ensure we have access to affordable, reliable and safe water and hygienic sanitation,” the Minister said.
Sisulu said the interest and oversubscription of the Rand Water bonds is a clear indication that the market has confidence in the management and employees of Rand Water.
Rand Water is an entity of the Department of Water and Sanitation.