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The Republic of South Africa on Monday, 9 January 2012 priced a US$1.5 billion
12 year global bond, on the international capital markets. The bond was priced at
a coupon (interest) of 4.665 percent which represents a spread of 270 basis
points above the 10 year US Treasury’s benchmark bonds.
The pool was made up of a diversity of investors from across globe with the
majority coming from Europe and the USA. With the transaction attracting bids to
the value of US $3 billion, a bid to cover ratio of 2x the issue amount.
The success of the transaction reflects investor confidence in South Africa as a
credit amid concerns about economic developments out of Europe. The
government also sees the success of the transaction as an expression of
confidence in the country’s stable political environment, sound macro-economic
policy framework and prudent fiscal management.
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