South Africa Attracts Robust Investor Demand in $3.5bn Eurobond Issuance
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South Africa raised $3.5 billion from a eurobond sale attracting $13.1 billion in bids, nearly four times the offer size. The National Treasury issued $1.75 billion each in 12-year notes at 6.25% yield and 30-year notes at 7.375%, versus 7.1% and 7.95% on similar maturities issued November 2024, saving an estimated $150 million in annual interest costs.
The issuance follows similar sales by Nigeria, Kenya, Angola, and Republic of Congo amid U.S. rate cut expectations. JPMorgan data show African debt spreads over U.S. Treasuries narrowed 314 basis points since April to 342 basis points. The rand traded at 16.9614, its strongest since February 2023, while 10-year domestic bond yields hit an eight-year low following Finance Minister Enoch Godongwana’s November 12 announcement of a new 3% inflation target with 1% tolerance band, agreed with SARB Governor Lesetja Kganyago.
