Brussels/Lagos/Johannesburg — Investor confidence in SA’s new administration will be tested as the country sells its first eurobonds under President Cyril Ramaphosa at a time when emerging-market currencies and debt are under pressure amid rising US rates and geopolitical tensions. The country is marketing dollar securities maturing in 2030 and 2048, with initial price talk of about 6% and 6.375%, respectively, according to a person familiar with the transaction, who asked not to be identified because they’re not authorised to speak about it. This would be a premium over existing yields, which rose as developing-nation currencies plunged on Tuesday. The rand has gained 15% since mid-November, the most globally, as Ramaphosa manoeuvered to succeed Jacob Zuma as president. Standard Chartered and Goldman Sachs, among others, have recommended long positions in South African assets as the new administration moved to curb the budget deficit, cut debt and stimulate growth. Risk premium Thi...
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