"Ultimately, when I price the bond I think of my kids: this is what they will have to pay," said a Treasury official this week after SA sold a record $5bn of bonds - about R75bn - on international markets, at favourable interest rates.
The bonds, part of the borrowing the government does to fund its deficit, included a 30-year bond which will have to be repaid in 2049 as well as a 10-year bond maturing in 2029. Both were issued at interest rates, or yields, that were significantly cheaper than the government paid when it issued bonds on international markets last year, which shows that investors reckoned the risk of lending money to SA was lower than last year so they were willing to charge less...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.