The Republic of South Africa has priced a US$2 billion 12-year global bond in the international capital markets. The bond was priced at a coupon (interest) rate of 5.875 per cent, 315 basis points above the 10- year US Treasury’s benchmark bond.
The transaction attracted bids to the value of US$7.4 billion, more than 3.5 times oversubscribed. The demand was mainly from investors out of Europe and the United States. This deal is printed against a difficult global backdrop characterised by rising yields and widening spreads.
