Public Notices

INTENTION TO INCUR LONG-TERM DEBT

EKURHULENI METROPOLITAN MUNICIPALITY

INTENTION TO INCUR LONG-TERM DEBT

INFORMATION STATEMENT

In accordance with Section 46(3) of the Local Government: Municipal Finance Management Act (No.56 of 2003), the Ekurhuleni Metropolitan Municipality hereby makes public an information statement setting out particulars of a proposed long – term debt to be considered for approval by the Council of the Ekurhuleni Metropolitan Municipality at its meeting on 28 May 2015.  The Ekurhuleni Metropolitan Municipality proposes to issue municipal bonds to wholesale investors under a Domestic Medium Term Note Programme listed on the Johannesburg Stock Exchange,(formerly The Bond Exchange of South Africa).The salient features of the debt are as follows:

Issuer of debt

Ekurhuleni  Metropolitan Municipality

Amount of debt

ZAR 750 000 000.00

Purpose of debt

Capital expenditure on property, plant or equipment to be used for the purpose of achieving the objects of the Ekurhuleni Metropolitan Municipality

Date of issue of debt

During the period May to June 2016,depending on investor demand at time of issue

Term of debt

Not exceeding 15 years, depending on investor demand at time of issue

Repayment of debt capital

Repayable up to 2031 depending on exact date of issue and tenor of bond

Effective rate of interest

The rates of the applicable benchmarked RSA Government Bonds ruling at date of debt issue plus a bond spread determined by investor demand at time of issue

Indicative coupon rate

To not exceed of the applicable benchmarked RSA Government Bonds ruling at date of debt issue plus a bond spread of 220 basis points.

Payment of interest

Semi-annually

Debt Security

The debt is unsecured

INVITATION FOR PUBLIC COMMENTS

Ekurhuleni Metropolitan Municipality invites written comments or representations from the public, National Treasury and the Gauteng Provincial Treasury in respect of the proposed debt. Comments should be directed to:

Chief Financial Officer

Ekurhuleni Metropolitan Municipality

P  O Box 66

Benoni

1500

Or faxed to 086 580 8493 or emailed to Ramasela.Ganda@ekurhuleni.gov.za

The closing date for receipt of comments or representations is 28 April 2016.

Any person who cannot write may come during office hours to the 6th Floor, 68 Woburn Avenue, Benoni, where assistance in transcribing that person’s comments or representation will be given. Any enquiries relating to the above should be directed to Tiny Molefe on Tel No: (011) 999 6530

K. Ngema, City Manager, Ekurhuleni Metropolitan Municipality, 4th Floor, Head Office Building, Corner Cross and Roses Streets, Private Bag X1069, Germiston, 1400

Notice 12/2016

06 April 2016