JOHANNESBURG – South Africa has issued two new bonds worth $5 billion (R74 billion) in international capital markets, the National Treasury announced on Tuesday.
In a statement National Treasury said: "The Republic of South Africa was able to successfully place $5 billion in bonds maturing in 2029 (10-year) and 2049 (30-year) in the international capital markets on 23 September 2019, with $2 billion and $3 billion placed in the 2029 and 2049 tranches respectively.
"Due to favorable pricing and a sizeable order book, the Republic was able to pre-fund an additional $1 billion over the planned $4 billion. Pre-funding is the early issuance of an amount planned to be issued in future years.
"This is done to take advantage of good pricing and favourable market conditions while reducing future borrowing need. The 10-year bond priced at a coupon rate and re-offer yield of 4.85 percent which represents a spread of 313 basis points above the 10-year US Treasury benchmark bond."
The National Treasury said the 30-year bond priced at a coupon rate and re-offer yield of 5.75 per cent which represents a spread of 358.6 basis points above the 30-year US Treasury benchmark bond.