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 26 February 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 1 100 000 000.00
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 March to April 2015,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 2030 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 30 January 2015
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, 2nd Floor, Head Office Building, Corner Cross and Roses Streets, Private Bag X1069, Germiston, 1400
Notice 24/2014
09 January 2015
