SA dollar, euro bonds oversubscribed


Johannesburg - South Africa has sold a $1 billion 30-year bond and a 500 million euro 12-year instrument on the international market, with both transactions being more than three times oversubscribed, the Treasury said on Friday.

It said the dollar bond had a coupon rate of 5.375 percent, while the euro bond was priced at 3.75 percent.

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Cape Town 101028. Deputy Finance Minister, Nhlanhla Nene is his 120 Plein Street office. PHOTO SAM CLARK, CA, Gaye Davis

The bonds, sold mostly to US and European investors, form part of South Africa's borrowing requirements for the 2014/15 financial year.

The successful issuance is a relief for South Africa after Standard & Poor's cut its credit rating while Fitch put it on negative watch last month, both citing poor growth prospects due to a prolonged platinum strike.

“While we are pleased with the confidence that the investors have shown in the sovereign, we are cognisant of our immediate challenges and can therefore not afford to be complacent as a country,” Finance Minister Nhlanhla Nene said. - Reuters

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