BUSINESS MAVERICK: Treasury pulls rabbit out of hat with $5bn sale of two international bonds

The Treasury said on Tuesday 24 September it had raised $5-billion, a billion more than initially offered, from the sale of a pair of international bonds – one for 10 years, the other for 30 years. The transaction was 2.7 times oversubscribed, meaning almost $11-billion in bids were made, underscoring surprisingly robust investor appetite for South African debt. The Treasury statement added that the issuance was “believed to be the largest ever out of sub-Saharan Africa”.

Of course, South African debt comes with a risk premium, but amid all the doom and gloom about rising debt levels, a barely growing economy and plunging levels of business confidence, not to mention policy inertia, investors are hardly demanding the sky.The 10-year bond priced at a coupon rate and re-offer yield of 4.85% which represents a spread of 313 basis points above the 10-year US Treasury benchmark bond,” said the Treasury.The 30-year bond priced at a coupon rate and re-offer yield of 5.

This is clearly good news for South Africa and could – and should – dampen some of the hyperbolic chatter about prospects of an International Monetary Fund bailout. Foreign investors are generally shy of lending money to economies with finances in a state of disarray necessitating such action. The transaction comes ahead of a possible risk downgrade by international credit rating agency Moody’s, before the end of the year – which would complete the country’s spiral into junk territory.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Lana Marks nominated as next Ambassador to South Africa - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.The United States Senate has confirmed President Donald Trump's nominee to be the next Ambassador to South Africa. Thuma mina to sidelines blacks 🤗🤗🤗🤗
Source: SABC News Online - 🏆 32. / 51 Read more »

BUSINESS MAVERICK: Saudi attacks herald generally higher SA pump prices – AASouth Africans are going to pay more at the pump – with the exception of 93 octane – from Wednesday 2 October, according to the latest forecast from the local Automobile Association. This is in large part because of the recent attacks on Saudi oil facilities. This will hurt consumers – but inflation remains relatively contained.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK: Inside Douglas Craigie Stevenson’s plan to rescue Cell CDouglas Craigie Stevenson, who was appointed as permanent CEO of Cell C in August, inherited a company that was probably on brink of collapse or close to voluntarily submitting itself to business rescue. But his recovery plan is based on two factors, which one analyst said is highly speculative.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK: PwC report on SA mining highlights rise of manganese — and coal is still kingPwC has released its annual report on South Africa’s mining sector. A few things stand out amid all the number-crunching. It confirms the recent turnaround seen in share prices, underscores the steady decline in the gold sector and highlights the dramatic rise of domestic manganese production. And coal is still the biggest revenue earner.
Source: dailymaverick - 🏆 3. / 84 Read more »