TRANS - CALEDON TUNNEL AUTHORITY - Notice to increase the aggregate nominal size of the commercial paper programme for VRESAP

Notice to increase the aggregate nominal size of the commercial paper programme for VRESAP

Trans-Caledon Tunnel Authority (TCTA)

WS05          ZAG000018060
WSP3          ZAG000019993
WSP4          ZAG000020009
WSP5          ZAG000020017


 NOTICE TO INCREASE THE AGGREGATE NOMINAL SIZE OF THE COMMERCIAL
       PAPER PROGRAMME FOR THE VAAL RIVER EASTERN SUB-SYSTEM
                                AUGMENTATION PROJECT

1. Trans-Caledon Tunnel Authority (“TCTA” or “The Issuer”)

   TCTA is established by Notice No 2631 in Government Gazette No 10545 of 12 December
   1986, as revised by Notice No 277 in Government Gazette No 21017 of 24 March 2000.
   TCTA is a major public entity listed as such in Schedule 2 of the Public Finance Management
   Act no. 1 of 1999 and a water management institution in terms of the National Water Act No.36
   of 1998 operating in the water sector.


2. The Vaal River Eastern Sub-system Augmentation Project (VRESAP or “The
  Project”)


   VRESAP consists of a 120 km pipeline from the Vaal Dam to the Knoppiesfontein diversion
   structure near Secunda to augment the Vaal River Eastern Sub-system.


   The purpose of the Project is to provide additional water to Eskom and Sasol’s facilities in the
   Mpumalanga Highveld region. The Project yields an estimated 350 million cubic metres (m³) of
   water per annum.
   On 26 November 2004, the then Minister of Water Affairs and Forestry instructed TCTA to fund
   and implement the VRESAP by a directive issued in terms of section 103 (2) of the National
   Water Act (Act no 36 of 1998) titled “Vaal River Eastern Sub-system Augmentation Project”.


3. VRESAP R400 million Commercial Paper Programme


   As part of the funding program for VRESAP, on 23 February 2006 TCTA registered an unlisted
   commercial paper programme in accordance with sub-section (1)(b)(iii) of section 3 of the
   Commercial Paper Regulations as promulgated in Government Notice 2172 (Government
   Gazette Number 16167) of 14 December 1994; (“The Programme” or “VRESAP Commercial
   Paper Programme”) under a programme memorandum titled:


   “Trans-Caledon Tunnel Authority Vaal River Eastern Sub-System Augmentation Project
   (VRESAP) ZAR 300 000 000 Domestic Commercial Paper Programme”


   On 3 July 2017 TCTA increased the size of the VRESAP Commercial Paper Programme by
   R100 million to R400 million.


   In terms of The Programme, TCTA, has from time to time, issued senior, unsecured bills,
   ranking pari-passu with The Project’s other debt, not exceeding the maximum aggregate
   nominal amount of ZAR 400 000 000.


4. R100 million Increase in the authorised size of the Programme


   In accordance with the terms of The Programme’s memorandum; as set out on page 2,
   paragraph 4 of “General Description of the Programme”; page 3 “Summary of the Programme”
   and “Page 14, number “10. Notices”: TCTA is required to issue a notice to the noteholders of
   the VRESAP Commercial Paper Programme in specified media should it propose to increase
   the size of The Programme by an amount not exceeding R100 million.


   Accordingly, TCTA hereby notifies the noteholders of The Programme of a R100 million
   increase in the size of the VRESAP Commercial Paper Programme to R500 million (ZAR
   500 000 000) with effect from the date of this notice. Henceforth any reference to The
   Programme should be read to mean:
   “Trans-Caledon Tunnel Authority Vaal River Eastern Sub-System Augmentation Project
   (VRESAP) ZAR 500 000 000 Domestic Commercial Paper Programme”


5. Other Details:


                        Project Ratings (Fitch Ratings* SA National Scale)
 Long-Term                     AA+(zaf)
 Short-term                    F1+(zaf)
 *TCTA’s Projects are rated by Fitch Ratings until 31 December 2019 in terms of the exemption granted by the
 Registrar of Ratings Agencies at the FSB to the RSA and SOEs on 24 November 2017
        Total Debt at Financial Year End (Actual for March 2017 and March 2018)
 2016/17 (March 2017)     R3 774 million    Including Commercial Paper of: R192 million
 2017/18 (March 2018)     R3 407 million    Including Commercial Paper of: R393 million
                           Project Borrowing Limit (Authority)
 2016/17                  R4 156 million
 2017/18                  R4 111 million
Issued on this 20th day of April 2018

For and on behalf of
Trans Caledon Tunnel Authority

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