Standard Bank announced on October 12 that it had fully guaranteed the debt financing of a R9 billion programme to modernise the Gautrain under its new fifteen-year concession in South Africa.
The deal supports Sihamba Sonke Mobility, the second concessionaire designated by the Gauteng provincial government to operate, maintain and renew the rapid rail network. The bank acts in particular as mandated lead arranger, guarantor, hedge provider, account bank and security agent.
The programme provides for the refurbishment of 24 existing trainsets and the purchase of eight new ones, as well as the modernisation of signalling, communications, digital ticketing and certain stations. It also includes the replacement of the feeder bus fleet and renewable energy initiatives.
Financial close secures the project's debt structure, but the published information does not detail the interest rate, the repayment schedule or the exact share of the R9 billion covered by each instrument. The announced amount corresponds to the investment programme supported by the financing, not necessarily to an immediate disbursement.
The Gauteng government had announced on September 30 the conclusion of the process to designate the new operator. It presents the concession as a step in modernising the network and improving the passenger experience after sixteen years of operation.
According to the Gautrain Management Agency, more than 216 million trips have been recorded since the system entered service. The network links Johannesburg, Pretoria and OR Tambo International Airport, three major hubs of economic activity in the province.