The South African government has successfully placed US$3 billion in bonds maturing in 2032 and 2052 in the international capital markets on 11 April 2022, the National Treasury has announced.<\/P>
In a statement, the Treasury said of this, US$1.4 billion and US$1.6 billion would be placed in the 2032 and 2052 tranches respectively.<\/P>
The 2022 Budget Review made provision for US$3 billion equivalent to be raised in the international capital markets in 2021\/22 to fund government\u2019s foreign currency commitments.<\/P>
\u201cGiven the volatility in the market over the period, the decision to raise the foreign currency was delayed in accessing the market in a more constructive issuance window,\u201d it said in a statement on Tuesday.<\/P>
It said the 10-year bond priced at a coupon and re-offer yield of 5.875 per cent, which represents a spread of 309 basis points above the 10-year US Treasury benchmark bond.<\/P>
\u201cThe 30-year bond priced at a coupon and re-offer yield of 7.300 per cent which represents a spread of 447 basis points above the 30-year US Treasury benchmark bond.<\/P>
\u201cThe final yields reflect a tightening of 37.5bps and 45bps from Initial Price Thoughts on the 10-year and 30-year instruments respectively. The transaction attracted an order book more than US$7.1 billion (2.4 times oversubscribed) with investor demand across the United Kingdom, North America, Europe, Asia, Africa and others. With respect to investor profile, demand came from a combination of Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks and other Financial Institutions.\u201d<\/P>
Treasury said the South African government viewed the success of the transaction as an expression of continued investor confidence in the country\u2019s sound macro-economic policy framework and prudent fiscal management.<\/P>
\u201cThe National Treasury mandated Absa Bank\/HSBC (consortium), Deutsche Bank\/Nedbank (consortium) and Rand Merchant Bank as Joint Lead Managers. The empowerment partners for the respective banks were: Tysys Advisory, Nations Capital Advisors; Rho Capital; and THEZA Capital,\u201d reads the statement.<\/P>
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Source: South African Government News Agency<\/P>
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The South African government has successfully placed US$3 billion in bonds maturing in 2032 and 2052 in the international capital markets on 11 April 2022, the National Treasury has announced.In a statement, the Treasury said of this, US$1.4 billion an…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"yoast_head":"\n