Johannesburg - Wednesday October 9, 2002
The country's leading construction-related group, Aveng Limited has
successfully rolled over the first R100-million tranche of its R750-million
commercial paper programme and has issued a further R50-million three-month
paper in the local market. The R150-million paper has been well taken up
by a spread of the country's leading financial institutions.
In July Aveng placed R100-million three-month paper in the market, priced
off the 3-month Johannesburg Interbank Agreed Rate (Jibar). This issue has
been rolled over and a further R50-million issued. Investec Bank Limited is
the arranger and dealer under the programme.
Aveng finance director Dennis Gammie said that the company was delighted at
the continuing success of the commercial paper programme as it has allowed
Aveng to diversify its sources of funding. "We are now able to structure our
liability profile appropriately and reduce the group's reliance on short
term bank funding. The CP programme provides Aveng with a greater degree of
funding flexibility and means we are not as exposed to the liquidity risk
associated with short term banking funding."
Please note:
Aveng Limited is a South African based group. It was listed on the JSE
Securities Exchange SA in July 1999 with the stated objective of becoming a
globally competitive construction-related group focused principally on the
developing world. It aims to achieve consistent long-term value for all its
stakeholders.
Its major businesses are
* Construction
* Steel and Allied
* Cement (46% investment in Alpha Limited)
Aveng's objectives are:
* To earn a return on average equity of 20%
* To grow diluted headline earnings per share by 20%
* To earn 50% of group revenues in hard currencies
* To have a debt:equity ratio of 35%
Visit our website - www.aveng.co.za
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