Toll roads

**Dave A** · 26-Mar-12, 07:42 PM

I feel the need to stress there is a difference between bonds and shares. In fact, last I knew, part of the retirement fund tax break deal is that a percentage (minimum 50% is it?) must be invested in bonds. Or has all that changed?

I'm also wondering if the fuss is aimed in the right direction in this. Just what has this R15.7 billion (in SANRAL bonds) been invested in? I ask because I understood the crowd that had been awarded the etolling contract were the folk that put up the mega bucks that had to be recouped.

**Nickolai Naydenov** · 26-Mar-12, 09:14 PM

Originally Posted by Dave A

I feel the need to stress there is a difference between bonds and shares. In fact, last I knew, part of the retirement fund tax break deal is that a percentage (minimum 50% is it?) must be invested in bonds. Or has all that changed?

I'm also wondering if the fuss is aimed in the right direction in this. Just what has this R15.7 billion (in SANRAL bonds) been invested in? I ask because I understood the crowd that had been awarded the etolling contract were the folk that put up the mega bucks that had to be recouped.

Yip there's a difference between bonds and shares, I was just trying to prove a point that government controls how we invest our money, but they don't take into consideration SANRAL as high risk because if etolling doesn't take off how are the bonds gona be paid back to the investors?

With regards to the 15.7 billion it is bonds. Basically the foreign company invested into sanral and owns actual shares while bonds are printed papers sold at a price with guaranteed return in certain period of time. So what happens is they want to raise money but don't want to sell equity in the firm so they sell bonds, in other words they borrow money and pay it back with interest. The government does this all the time, when they need to raise money they sell bonds which are considered safe investment, however I have completely different view on bonds, but that is a long story. Anyway I hope I cleared up what I meant lol...