ACSA continues early debt-redemption strategy
The Airports Company of SA (ACSA) has continued with its early debt-redemption strategy‚ repaying R500m last month on a bond whose maturity date was only in October 2014.
Transport Minister, Dipuo Peters said on Monday (19 August 2013) that the strategy had been adopted in the light of the company's favourable cash position and against the backdrop of its "modest investment plan".
Last year the pursuit of this strategy saw ACSA slash its debt from R16.7bn at the end of March 2012 to R14.8bn at the end of March 2013‚ thereby improving its gearing ratio from 60% to 53% over the period.
This was achieved by ACSA having negotiated an early settlement of a loan of R1.3bn due nine years later and by investing R1.2bn to repay a bond due in February 2014‚ Peters said in a written reply to a parliamentary question by Democratic Alliance MP Greg Krumbock.