Notice 2-2020 information Statement
CITY OF 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 City of 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 City of Ekurhuleni Metropolitan Municipality at its Council meeting on March 2020 . The City of 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 |
City of Ekurhuleni Metropolitan Municipality |
|
Amount of debt |
Up to ZAR 3 000 000 000.00 |
|
Purpose of debt |
Capital expenditure on property, plant or equipment to be used for the purpose of achieving the objectives of the City of Ekurhuleni Metropolitan Municipality |
|
Date of issue of debt |
During the April to June 2020 period, 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 2035 depending on exact date of issue and tenor of bond |
|
Effective rate of interest |
The rate of the applicable benchmarked RSA Government Bond ruling at date of debt issue plus a bond spread determined by investor appetite at time of issue |
|
Indicative coupon rate |
Not to exceed the applicable benchmarked RSA Government Bond ruling at date of debt issue plus a bond spread of 300 basis points. |
|
Payment of interest |
Semi-annually |
|
Debt Security |
The debt is senior 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: Tiny Molefe
Senior Manager Corporate Finance
City of Ekurhuleni Metropolitan Municipality
P.O. Box 66, Benoni, 1500.
Emailed to Tiny.Molefe@ekurhuleni.gov.za
The closing date for receipt of comments or representations is the 17th February 2020.
Any person who cannot write may come during office hours to the 6th Floor, Office 609, 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
Dr Imogen Mashazi, City Manager, City of Ekurhuleni Metropolitan Municipality, 2nd Floor, Head Office Building, Corner Cross and Roses Streets, Private Bag X1069, Germiston, 1400
Notice 02-2020: 27 January 2020
