Treasury: Dollar, euro bonds oversubscribed

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South Africa had sold a $1 billion (R11bn) 30-year bond and a e500 million (R7.2bn) 12-year instrument on the international market, with both transactions being more than three times oversubscribed, the National 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. 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 the country 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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