Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

South Africa’s IDC to Sell Shares to Fund Projects

Sept. 14 (Bloomberg) -- South Africa’s Industrial Development Corp. said it will have to issue bonds and sell 26 billion rand ($3.6 billion) of its listed shares by 2015 to fund new projects and investments.

The IDC expects to lend between 105 billion rand and 129 billion rand in loans over the next five years and will need to raise between 53 billion rand and 64 billion rand in financing, according to Chief Executive Officer Geoffrey Qhena.

The IDC anticipates “a greater demand for equity funding, with more project-related business,” Qhena said in a written presentation to lawmakers in Cape Town today. “Existing equity investment should be replaced with new investments that will yield as good returns over the medium to long-term.”

The Johannesburg-based lender owned listed investments worth 47 million rand at the end of March, including a 30 percent stake in York Timber Holdings Ltd. and 22 percent of Merafe Resources Ltd, its latest annual report shows. It also owned 8.8 percent of ArcelorMittal South Africa Ltd. and 13 percent of Kumba Iron Ore Ltd. as of April, and 8 percent of Sasol Ltd. as of January, according to Bloomberg data.

The IDC intends focusing on funding priorities identified in the government’s industrial development program, including the auto industry, textiles, clothing, forestry, paper and metals fabrication, Qhena said.

It will also finance ethanol plants that would have the capacity to produce about 300 million liters (68 million gallons) of fuel a year by 2016, and back solar, wind and nuclear energy projects in a bid to help South Africa cut its carbon emissions.

To contact the reporter on this story: Mike Cohen in Cape Town at mcohen21@bloomberg.net

To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.