Today the Republic of South Africa successfully launched a new 6.5% US$1billion 10year Global bond maturing on 2 June 2014. The transaction was preceded by a 5-day investor roadshow in major European and US centres.
The success of today's transaction reflects South Africa's strong economic fundamentals, consistent economic policy and solid investment grade rating. The transaction completes the South African Government's funding program for fiscal year 2004/2005 in the international capital markets.
The new bond was priced at 195bps (1.95%) over the 10-year US Treasury, providing South Africa with its lowest ever spread and coupon in the Dollar Bond market. The issue was placed without any pricing concession to South Africa's secondary spread curve, demonstrating the attractiveness of the South African credit despite recent volatility in the international bond market.
Copies of the prospectus supplement and prospectus may be obtained by contacting either of the joint lead managers and bookrunners for the transaction.
Rand Merchant Bank - A division of FirstRand Bank Limited acted as a senior co-lead manager.