Ekurhuleni Muni2

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The City of Ekurhuleni Metropolitan Municipality (“CoE”, the “City” or the “Municipality”) [formerly known as Ekurhuleni Metropolitan Municipality (“EMM”)] is one of eight large metropolitan cities in South Africa, and located in Gauteng province. It is the fourth most populous with a population of 3.5 million accounting for 25% of the population of Gauteng province and 6% of the population of South Africa. The key services provided by CoE include provision of housing, electricity, water, transport, waste and sanitation services. The City has identified a number of projects, primarily around the airport precinct, to promote economic growth and job creation. CoE plans to raise up to ZAR3 billion from the local market through the issuance of municipal bonds. IFC’s proposed investment is to participate in CoE’s bond issuance by taking up an amount of up to US$55 million (in South African Rands equivalent). This would be a follow-on investment to IFC’s bond investment in 2017 and will be used to support the implementation of the projects included in the Capital Expenditure (CAPEX) plan of the City, aiming at enhancing crucial urban infrastructure in energy (such as substations and network enhancement), waste and water and sanitation, road and stormwater system upgrades, municipal facilities, and parks and recreation facilities, and at increasing infrastructure access to many of the low-income townships in CoE (the “Project”).