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South Africa,United States : TRANSNET obtains locomotive loan from US-Exim

August 13, 2014

Transnet, South African state-owned rail and port operator, has announced the obtaining of a Rand 6 billion funding guarantee from US-Exim, US export credit agency.

The guarantee is aimed at funding the acquisition of 233 diesel-electric locomotives from GE Transportation. It support Transnet to bolster funds in the markets for GE's share of its massive Rand 50 billion order for 599 electric and 465 diesel locomotives that was declared in March.

Transnet group chief executive Mr Brian Molefe commented "This is a massive thumbs-up from the international investor community, affirming Transnet's creditworthiness and South Africa's attractiveness as an investment destination."

The funds are to be raised via bank loans backed by the guarantee and will be drawn down over 3 years as the locomotives are developed. The repayment period is 14 years.

The locomotive agreement is a key component of Transnet's fleet renewal programme that comes under the company's 7 years Rand 312 billion Market Demand Strategy.

The new GE locomotives will be located on the company's successful Evolution Series product platform.

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Source: TendersInfo (India)

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