Standard Bank has underwritten a debt package that will unlock about R9 billion in investment for the Gautrain under its new 15-year public-private partnership (PPP) concession.
The funding will support the operation, maintenance, upgrading and modernisation of the Gauteng rail system, including the refurbishment of its existing 24 trainsets and the procurement of eight new trains.
The investment will also fund station upgrades, new signalling and communication systems, digital fare collection, renewable energy initiatives and the replacement of bus feeder fleets.
Standard Bank acted as the sole mandated lead arranger, underwriter, hedge provider, account bank, performance bond issuer, facility agent and security agent for the debt package.
Agnes Nkosi, Executive Vice President for Infrastructure at Standard Bank Corporate and Investment Banking, said the deal reflected the bank’s long-term commitment to infrastructure development in South Africa.
The latest financing builds on Standard Bank’s involvement in the original Gautrain project. The bank helped finance the system’s initial development, with the original financing closing in January 2007.
The new concession was awarded to Sihamba Sonke Mobility (SSM), bringing the Gautrain into its next 15-year operating period after the end of the nearly 20-year Bombela concession.
As part of the new concession, French rail group Alstom will manufacture eight new four-car trains at its Ubunye facility in Gauteng. This will increase the Gautrain fleet from 24 to 32 trains.
Alstom’s portion of the concession is valued at about €800 million (approximately R15 billion) and includes a new signalling system, communication upgrades and long-term rail maintenance.
Gautrain Management Agency CEO Tshepo Kgobe said additional trains were needed as passenger demand had previously pushed the system beyond its peak capacity.
The modernisation programme is expected to strengthen the Gautrain’s capacity as Gauteng continues to seek more efficient, reliable and lower-carbon public transport connecting its major economic centres.
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