Leading international law firm, Freshfields Bruckhaus Deringer, has advised South African ports, railways and pipelines parastatal, Transnet SOC Ltd, on the US$6 billion update of its Global Medium Term Note Programme and its issuance under the programme of the first African local currency-denominated bond on the international capital markets. The ZAR5 billion 9.5% Notes will be used to help fund the company’s R307.5-billion investment into ports, railways and pipelines.

The bond matures in 2021and is the third issuance under Transnet’s Global Medium Term Note Programme. The bonds, which are not guaranteed by the South African government, are supported solely by the strength of Transnet’s balance sheet.

The Freshfields team was led by partners Duncan Kellaway and Stuart Grider supported by associates Joshua Deutsch, Nick Hayday, Adam Ajlouni and Chioma Amobi.

Freshfields partner, Duncan Kellaway, commented ’Transnet's issuance of the first African local currency-denominated bond, which is Rand-denominated and listed on the London Stock Exchange, is a pioneering move by Transnet and marks a major coming of age moment in the economic development of Africa.’

Freshfields partner Stuart Grider added, ’This transaction follows on the heels of the Eskom bond offering, on which we also advised. We have now advised on bond offerings by two of the largest and most prominent companies on the African continent. Freshfields Africa capital markets practice has been going from strength to strength, and with several other African capital markets deals in the pipeline, continues to expand.’