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 of South Africa.
“Both institutions are working in tandem to conclude the audit process in the shortest possible timeframe, with submission expected within the current reporting cycle.”
“The City has prioritised the integrity and accuracy of its financial reporting processes to ensure full compliance with regulatory standards.”
“Importantly, the City remains financially operational and continues to meet all its debt servicing and financial obligations without interruption. Service delivery to residents remains unaffected.”
Debt servicing obligations include interest payments to bondholders and repayment of capital when bonds mature.
The city said it was engaging with the JSE and other regulatory bodies and was confident the matter would be resolved promptly, allowing for the reinstatement of its bonds.
“This process reflects the City’s commitment to credible, transparent, and accountable financial governance, ensuring that all disclosures meet the highest standards expected by investors and the public.”
Further updates, it said, would be communicated as “milestones” were reached.
Nthatisi Modingoane, spokesperson for the city, did not respond to a query sent on Friday.
The city offers retail bonds through Jozibond, aimed at private individuals as well as entities such as trusts, stokvels, close corporations, companies and other legal entities.
It also has a longer-running municipal debt programme and in 2014 became the first municipality to list a green bond on the JSE.
It remains unclear from the public notices how holders of affected listed debt who want to sell in the secondary market are expected to do so while the suspension remains in place, although the city’s investor-relations material says Jozibonds can ordinarily be traded through a JSE broker.
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