Financial services provider Standard Bank has underwritten the full debt package for the Gautrain’s new 15-year public-private partnership concession, unlocking the next phase of investment in the landmark rapid rail system nearly two decades after financing its original development.

The financial close paves the way for R9-billion in investment to operate, maintain, upgrade and modernise the Gautrain.

It supports Sihamba Sonke Mobility, the second concessionaire appointed by the Gauteng provincial government, and extends Standard Bank’s involvement from the original project financing, which closed in January 2007.

Standard Bank acted as sole mandated lead arranger, underwriter, hedge provider, account bank, performance bond issuer, facility agent and security agent, underwriting the full debt package.

The financing supports R9-billion in expenditure over the 15-year concession, including the refurbishment of 24 existing trainsets, the procurement of eight new trainsets, signalling and communications upgrades, the digitalisation of the fare collection platform, station upgrades, renewable-energy initiatives and the replacement of the feeder bus fleet.

“The Gautrain changed the way people move between Gauteng’s key economic centres. This financing will help ensure it continues to deliver that value as demand for efficient, reliable and lower-carbon transport grows.

“Having helped fund the system’s original development, Standard Bank is proud to back the investment that will define its next chapter,” says Standard Bank Corporate and Investment Banking client coverage executive VP infrastructure Agnes Nkosi.

“Underwriting the full debt package reflects both our confidence in the Gautrain’s long-term importance and our ability to deliver complex infrastructure financing at scale. By combining structuring, underwriting, markets, transaction banking and agency capabilities, we have created an integrated solution that supports the resilience of the system and a substantial programme of modernisation,” she adds.