The Treasury Department has many functions. One of the most important of these is its responsibility to raise new loans, service existing loans, account for external loans and ensure that the City complies with the terms of its loan agreements.
An external loan is a long-term liability repayable to an external financial institution over a number of years, together with interest. It is used to finance the outlay of capital assets funded by the External Financing Fund (EFF). Capital Assets are funded through the issue of municipal bonds or the obtaining of external loans from financial Institutions.
The City has issued three bonds thus far to raise external finance. These bonds have raised R4,2 billion as part of the City’s R7 billion Domestic Medium Term Note Programme (DMTN), and are listed on the JSE (formally the Bond Exchange of South Africa).
Long term borrowings:
Annual Consolidation of Disclosure Statements