South Africa and China have inked 26 agreements valued at R94-billion that will go some way to address their trade imbalance.
The Industrial Development Corporation (IDC) and Beijing Auto Works signed a R12-billion agreement‚ the biggest of the lot‚ to build a car manufacturing plant in SA‚ Trade and Industry Minister Rob Davies said on Wednesday during Chinese President Xi Jinping’s second state visit to SA.
Meanwhile‚ Transnet has secured a $2.5-billion funding guarantee from China Export Credit Insurance Corporation.
Transnet has already secured a $2.5-billion bilateral loan from the China Development Bank. The parastatal will use the 15-year Chinese guarantee to finance railway‚ ports and pipeline projects.
It said the guarantee allowed it to raise funding in the market for its multibillion-rand infrastructure investment programme‚ including the acquisition and maintenance of its locomotive fleet.
The guarantee is the second major funding agreement Transnet has reached this month and the second such facility the state-owned freight and logistics company has obtained from an international institution.
Last week it raised a R12-billion club loan through five institutions‚ including Absa and Nedbank.
Last year‚ Transnet got a R6-billion funding guarantee from American export credit agency US-Exim‚ which will be financed by Absa‚ Standard Bank and Old Mutual Specialised Finance.
China North Rail and China South Rail last year won the lion’s share of work in Transnet’s R50-billion programme to procure 1064 locomotives.
As part of the deal‚ the Chinese manufacturer will provide 56% of the locomotives.
International winning bidders Bombardier and General Electric will make up the balance.
Transnet has to date invested more than R108-billion through its market demand strategy since its establishment in 2012. — BDLive
SA, China seal R94bn deals
The Industrial Development Corporation (IDC) and Beijing Auto Works signed a R12-billion agreement‚ the biggest of the lot‚ to build a car manufacturing plant in SA‚ Trade and Industry Minister Rob Davies said on Wednesday during Chinese President Xi Jinping’s second state visit to SA.
Meanwhile‚ Transnet has secured a $2.5-billion funding guarantee from China Export Credit Insurance Corporation.
Transnet has already secured a $2.5-billion bilateral loan from the China Development Bank. The parastatal will use the 15-year Chinese guarantee to finance railway‚ ports and pipeline projects.
It said the guarantee allowed it to raise funding in the market for its multibillion-rand infrastructure investment programme‚ including the acquisition and maintenance of its locomotive fleet.
The guarantee is the second major funding agreement Transnet has reached this month and the second such facility the state-owned freight and logistics company has obtained from an international institution.
Last week it raised a R12-billion club loan through five institutions‚ including Absa and Nedbank.
Last year‚ Transnet got a R6-billion funding guarantee from American export credit agency US-Exim‚ which will be financed by Absa‚ Standard Bank and Old Mutual Specialised Finance.
China North Rail and China South Rail last year won the lion’s share of work in Transnet’s R50-billion programme to procure 1064 locomotives.
As part of the deal‚ the Chinese manufacturer will provide 56% of the locomotives.
International winning bidders Bombardier and General Electric will make up the balance.
Transnet has to date invested more than R108-billion through its market demand strategy since its establishment in 2012. — BDLive
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