The Roads Fund Administration raises financing using roads bond.
A Roads Bond is a financing agreement entered into with a financial institution to raise money for financing road rehabilitation and maintenance.
The RFA raised the first roads bond in 2015 from NBS Bank amounting to MK10.2billion which was used for the rehabilitation, to dual carriageway of Area 49 to Parliament round about and the construction of the first ever clover leaf interchange at area 18 in Lilongwe.
In June 2023, RFA raised a second roads bond with a consortium of financing institutions consisting of Standard Bank PLC, Old Mutual Investment Group Ltd and Continental Asset Management Nominees Ltd. A total of MK34.5billion was raised.
The fund is for the rehabilitation and capacity expansion of the Mzimba Street and Kenyatta Drive Roads to six lanes including the construction of an interchange at Kamuzu Central Hospital roundabout in the City of Lilongwe. The road
The facility will be repaid with money from the roads fund for a period of 15years.
RFA intend to raise more funds from the private sector fin form of road bonds for rehabilitation of roads across the country as one way of fast tracking rehabilitation and maintenance of roads.