Joburg says JSE bond suspension is ‘procedural’

By Thebe Mabanga

The City of Johannesburg has sought to play down the JSE’s suspension of its listed debt securities, describing the move as “procedural” and a “technical compliance matter” rather than a sign of financial distress.

The suspension follows the city’s failure to submit its annual reporting documents for the year ended 30 June 2025 within the required timeframes.

On Friday, the JSE announced that the city’s debt securities had been suspended from trading after it failed to publish its financial information timeously.

The exchange had already warned bondholders on 2 February that the city missed the seven-month deadline set out in the JSE’s Debt and Specialist Securities Listings Requirements.

It said at the time that suspension could follow if the documents were still outstanding by 28 February.

The city told bondholders on 29 January that its audited annual financial statements for the year ended 30 June 2025, the auditor’s report, and the integrated annual report, would not be submitted by the 31 January deadline because of “ongoing internal approval processes”.

It then said on 27 February that publication would no longer take place on or before 28 February.

The city also tried to reassure suppliers and residents this weekend about its finances, while offering limited detail on the immediate implications for bondholders directly affected by the suspension.

“The City of Johannesburg notes the procedural suspension of its listed debt securities by the JSE, following the timing of its audited financial statement submission,” the city said in a statement.

“The City wishes to emphasise that this is a technical compliance matter related to reporting timelines, not an indication of financial distress or instability.”

The city said work to finalise the audited financial statements was at an advanced stage and that the audit process was being completed with the Auditor-General