By Thebe Mabanga
The City of Johannesburg has downplayed the JSE’s suspension of its listed debt securities, describing it as “procedural” and a “technical compliance matter” rather than a sign of financial distress.
On Friday, the JSE announced that the city had failed to submit its annual reporting documents for the year ended 30 June 2025 and had suspended its bonds from trading as a result. The suspension followed earlier notices in January and February in which the city said it would miss the relevant deadlines.
The city also sought to allay concerns among suppliers and residents about the state of its finances, while giving limited detail on the 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.”
It said work to finalise the audited financial statements was “at an advanced stage”.
“This includes the current finalisation of the audit process, which is being undertaken in collaboration with the Auditor-General of South Africa through standard protocols as outlined in the engagement letter between the City and the Auditor-General.”
“Both institutions are working in tandem to conclude the audit process in the shortest possible timeframe, with submission expected within the current reporting cycle,” it said.
“The City has prioritised the integrity and accuracy of its financial reporting processes to ensure full compliance with regulatory standards,” it said.
“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 to resolve the matter.
It remains unclear from the public notices what options are available to bondholders who may want to dispose of affected listed debt securities while the suspension is in place.
The city offers retail bonds through Jozibond, aimed at private individuals as well as entities including trusts, stokvels and companies.
It also issues municipal debt through its broader note programme and in 2014 became the first South African municipality to list a green bond on the JSE.
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