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2011-09-13: Joburg takes to the road to convince investors

A HIGH powered City of Johannesburg, finance delegation will be visiting Cape Town tomorrow as part of a two legged road show to present the City's audited financial statements.

Included in the delegation is the member of the mayoral committee for Finance Councillor (cllr) Geoffrey Makhubo, city manager Mr Trevor Fowler and head of Investor Relations Mr Floyd Sibandze.

Joburg annually undertakes an official communication and engagement session with the investor community to present its audited financial statements, business plans and strategy for the future.

Cllr Makhubo says "We are obliged to report back on our financial performance and strategy to the bondholders who are mostly asset management organizations".

These are represented by portfolio managers, relationship executives and credit and market analysts for amongst others Investec, Old Mutual, Allan Grays, Moody's Investor Services, First Rand Group, National Treasury, Standard and ABSA banks and the Johannesburg Stock Exchange.

"On the 13 September, we will be at the Western Grind Hotel in Cape Town and return to Joburg the next day to do a presentation at the Hilton Hotel", says Cllr Makhubo. Both sessions start at 8.30 and end at 11.00.

Although the City received a qualified audit report for the 2010/11 financial year, it has since received favourable credit ratings.

The City of Johannesburg has issued seven bonds since 2004. Municipal bonds are debt obligations issued by government entities to members of the public to generate income to meet capital expenditure. The issuer of the bond guarantees to pay interest (coupons) at set periods and to repay the principal debt on a specified date. The interest paid on the bond is tax deductible. Issuing bonds is standard practice for cities in the developed.

The Domestic Medium Term Note (DMTN) programme allowed the City to issue up to R6-billion in municipal bonds up to 2010 without having to provide additional documentation ahead of each new issue. All the bonds are listed on the Bond Exchange of South Africa.

The city manager will also outline the City's Growth and Development Strategy 2040 vision on which it is currently engaging citizens to ensure that Joburg can meet the future demands of an ever changing city.

"Joburg, a City where community development, personal growth and social mobility are enhanced so that challenges of poverty, vulnerability, inequality and social exclusion are fundamentally addressed".

Issued on behalf of:
Councillor Geoffrey Makhubo
Mayoral committee member

Issued by:
Virgil James
City of Joburg
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