ACSA eyes cash reserves for R22bn airports expansion

South Africa’s state-owned airports operator plans to use its cash reserves to fund the first two years of a R21.7 billion infrastructure programme that includes refurbishing airports.

Airports Company South Africa (ACSA) will turn to capital markets for financing from the third year of the project, chief financial officer Luzuko Mbotya said in an interview. "In the first few years, we do not anticipate going to the markets," he said. “We’re actually sitting in a very favourable cash position right now. Our plan is to utilise our own cash reserves to fund the first two years."

The company has cash reserves of R4.6 billion, and plans to spend about R10.1 billion in the first three years of the five-year project, Mbotya said. It intends to refinance two of its bonds maturing in 2028 and 2029, he added.

ACSA’s infrastructure drive includes the construction of new cargo and passenger terminals at OR Tambo International Airport in Johannesburg, as well as runway realignments and terminal expansions at Cape Town International Airport, Chief Dawid Stuurman International Airport in Gqeberha and King Phalo Airport in East London.

-BLOOMBERG NEWS-