Cape Town - South Africa will maintain its weekly government bond auctions and switch programme at current levels while plans to launch a debut sukuk are still in the pipeline, Treasury director-general Lungisa Fuzile said on Wednesday.
The Treasury said in February the Islamic bond, first announced last year, would form part of its planned foreign issuance.
A $2 billion, 12-year dollar bond launched in September was nearly four times subscribed.
“The sukuk is still in the pipeline. There's just one or two hurdles that we need to cross,” Fuzile told Reuters on Wednesday, ahead of Finance Minister Pravin Gordhan's medium term budget speech to parliament.
“We have done almost all the paperwork that has got to be done and the legal framework allows it,” he added, without giving a timeframe.
The Treasury would continue issuing 2.35 billion rand ($241 million) at its weekly straight bond auction, and offer 800 million rand of inflation-linked paper.
Government bonds weakened and yields rose earlier this week as some market players priced in the chance of increased issuance to plug a budget deficit analysts had expected to widen to 4.9 percent of GDP for 2013/14. - Reuters