SOUTH AFRICA ISSUES BONBDS TOTALLING 2.0 BILLION US DOLLARS IN NEW INTERNATIONAL ISSUANCE
PRETORIA– South Africa has issued two new bonds in the international capital market totallin two billion US dollars, the National Treasury said here Wednesday.
On 15 May 2018, the Republic of South Africa successfully placed US$2 billion in notes maturing in 2030 (12-year) and 2048 (30-year) in the international capital markets through an intra-day execution, the Treasury said.
Proceeds from the bond issuance will be used to finance the government’s foreign currency commitments. The breakdown of the total issuance amount consists of 1.4 billion USD on the 12-year tranche and 600 million USD on the 30-year tranche.
The transaction was more than 1.7 times over-subscribed in aggregate with investor demand from across all the major financial centres in the United States, Europe, Britain, the Middle East and Asia.
The Treasury said the 2018 Budget Review specified an amount of 9.0 billion USD to be raised in international capital markets as part of South Africa’s annual borrowing requirement over the medium term. The South African government sees the success of the transaction as an expression of investor confidence in the country’s sound macro-economic policy framework and prudent fiscal management, it added.
The National Treasury mandated Deutsche Bank/Nedbank (consortium), J.P. Morgan, Rand Merchant Bank and Standard Bank as joint book runners. The appointment included each bank’s Black Economic Empowerment (BEE) partners, namely RHO Capital and Pamoja Capital, Dew Partners, Basis Points Capital, and Africa Rising Capital, respectively.
Source: NAM NEWS NETWORK