(Ecofin Agency) - In South Africa, Transnet has announced that it has raised 12 billion rand ($ 850 million) via a syndicated loan in order to fund part of its plan on new trains to transport fuel and other commodities.

The country’s logistics group has been using wagons to transport commodities like coal, iron ore and fuel. Transnet has been expanding and renovating railways, pipelines and ports in South Africa, known to be the most industrialized African country which is battling with weakening growth.

The company stated that the money was to be raised from numerous banks, including Nedbank, Bank of China, Barclays Africa Group and the asset management arm of insurer Old Mutual.

According to Garry Pita, the Chief Financial Officer, the loan raises the company’s fund for the new train to 48 billion rand out of an overall 50 billion rand, Reuters reports.