Suspension of CoJ bonds ‘not a sign of financial distress’

The City of Johannesburg’s listed debt securities remain suspended following a decision that has left the country’s most critical metro locked out of the debt market.

The Johannesburg Stock Exchange (JSE) made the call in a Sens announcement last week after the city delayed publishing its financial statements for the year ended 30 June 2025.

Read: Broken budgets, broken cities: Why municipal mismanagement is crippling SA’s growth

Joburg officials have since confirmed that the annual reporting documents are expected to be tabled and submitted to the JSE by no later than 31 May 2026.

This means the city will not be able to issue any debt instruments until the suspension is lifted.

In an updated Sens on Thursday, the JSE told bondholders that “the city continues to meet all its financial obligations as they fall due.

“The delay and the subsequent suspension arise from a technical compliance matter relating to reporting timelines and do not reflect any financial distress or instability”.

Despite this, and the city’s assurances that it’s “not in financial distress, that service delivery is not affected and that financial obligations continue to be met”, Finance Minister Enoch Godongwana previously warned Joburg Mayor Dada Morero that key grants could be withheld if the city fails to address worsening financial mismanagement.

The city says it has redeemed R9.9 billion in bonds (COJ01–COJ07 and COJG01). Only R1.44 billion (COJ08) remains, scheduled for redemption on 22 June 2026.

Listen to Khaya Sithole of Corusca Consulting speaking to Jimmy Moyaha on SAfm Market Update about the suspension of CoJ bonds (or read the transcript here): 

You can also listen to this podcast on iono.fm here.