The National Treasury will buy-back the Inflation Linked Bond R198 (3.80%:2008) and offer the R210 (2.60%:2028) and R202 (3.45%:2033) through the South African Reserve Bank (SARB).
Methodology: An All-In-Pricing method will be applicable; however, bids will be submitted in terms of yield.
Participation: The buy-back/offer is on a voluntary basis and all BESA members are eligible to participate.
The auction will be conducted on a multiple yield basis, where successful bidders will be allotted at their respective bidding yields.
The auction will be on a cash neutral basis.
Participants are required to submit nominal amounts with a minimum of R10 million and multiples of R5 million there after.
Settlement will be on a T+3 basis.
Bond : R198 (3.
Bonds : R210 (2.60%: 2028) and 202 (3.
The auction closing times are kept different for the buy-back and offer auctions for systems operational purpose.
The SARB will publish the results of the auctions by 12h30.
The National Treasury reserves the right to buy-back or offer nothing or less than the announced amounts.
Odd-lot amounts: The National Treasury will round upwards any odd amounts to the nearest R1 000, 000. 00 (one million rand).
An option is available to participants to top-up any odd amounts up to the nearest R1 000, 000. 00 from National Treasury.
The topped up amount(s) will be sold to the successful bidders at the allotted yield of the auction.
This option will be available up to 12h00 the next business day following the auction.