Johannesburg – South Africa has successfully issued US$3.5 billion in bonds maturing in 2036 (12-year) and 2054 (30-year) in the international capital markets.
National Treasury said the bonds were issued on Tuesday, (12 November 2024), with US$2 billion and US$1.5 billion placed in the 2036 and 2054 maturities, respectively.
“The 12-year bond and the 30-year bond priced at a coupon and re-offer yield of 7.1 per cent and 7.95 per cent, respectively,” a statement issued by the National Treasury said.
“The final yields reflect a tightening of 30 basis points from Initial Price Thoughts across the 12-year and 30-year bonds.”
The statement added: “The Republic of South Africa is pleased to have attracted a wide investor base from multiple jurisdictions including the United Kingdom, North America, Europe, Asia, Africa, and other regions, which it views as an expression of continued investor confidence in the country’s sound macroeconomic policy framework and prudent fiscal management”.
National Treasury said the transaction attracted an order book in excess of US$8.6 billion (2.5 times oversubscribed), which underscores the strong support for the transaction.
“With respect to investor profile, demand came from a combination of Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks and other Financial Institutions,” the statement said.
“The National Treasury mandated Citigroup Global Markets Limited and Goldman Sachs International as Joint Bookrunners.
“The empowerment partners for the respective banks were Crede Capital Partners and Vunani Capital Proprietary Limited.”
