SA places $2.5bn bonds in international capital markets amid high demand
SA has successfully placed $2.5bn in the international capital markets; $1bn in 10-year bonds, maturing in 2027, and $1.5bn in 30-year bonds, maturing in 2047, Treasury announced on Wednesday. "The transactions were more than two times over-subscribed, in aggregate, with investor demand from across the major investor centres in Asia, Continental Europe, the UK and the US," Treasury said in a statement. It believed the success of the transaction was "an expression of investor confidence in the country’s sound macro-economic policy framework and prudent fiscal management. Overall the bonds received bids of just more than $5.3bn — $2.1bn in the 10-year and $3.2bn in the 30-year tranche." The 10-year bond was priced at a coupon rate of 4.85% (at par value), which represents a spread of 260.5 basis points above the 10-year US treasuries. The 30-year bond was priced at a coupon rate of 5.65% (at par value), which represents a spread of 283.7 basis points above the 30-year US treasuries. N...
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