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South Africa raises EUR 160.6mn from R2030, R2037, R2048 bond issues, yields mixed

January 22, 2014

South Africa borrowed on Tuesday, Jan 21 , a total of ZAR 2.35bn ( EUR 160.6mn ) through the sale of three fixed-rate government bond issues, in line with the original target, data from the central bank showed. Yields were mixed compared to the previous auctions. The central bank sold ZAR 550mn of its R2030 bond, which matures on Jan 31, 2030 and bears an annual coupon of 8%, at a yield of 8.94%, up from 8.83% at the previous auction of the issue held on January 14 . The total amount of bids placed fell 54.1% to ZAR 1.5bn . The central bank sold another ZAR 1bn of its R2037 bond, which matures on Jan 31, 2037 and bears an annual coupon of 8.5%. It attracted bids worth ZAR 3.295bn , up 69.4% compared with the previous auction of the issue held on November 26 , and was sold at a yield of 9.14%, up from 9.08%. The central bank sold also ZAR 800mn of its R2048 bond, which carries an annual coupon of 8.75% and matures on Feb 28, 2048 , at a yield of 9.25%, down from 9.44% at the previous auction of the issue held on December 3 . Bids worth ZAR 1.82bn were received, up 1.9% from the previous auction. R2030, Jan 31, 2030 , 8% coupon R2030, Jan 31, 2030 , 8% coupon R2037, Jan 31, 2037 , 8.5% coupon R2037, Jan 31, 2037 , 8.5% coupon R2048, Feb 28, 2048 , 8.75% coupon R2048, Feb 28, 2048 , 8.75% coupon Auction date 21-Jan-14 14-Jan-14 21-Jan-14 26-Nov-13 21-Jan-14 3-Dec-13 Total amount allocated (ZAR mn) 550 1,000 1,000 550 800 900 Total bids received (ZAR mn) 1,500 3,270 3,295 1,945 1,855 1,820 Bid-to-cover ratio 2.73 3.27 3.30 3.54 2.32 2.02 Lowest bid 8.82% 8.70% 9.00% 9.05% 9.10% 9.25% Highest bid 9.10% 9.20% 9.32% 9.30% 9.50% 9.80% Clearing yield 8.94% 8.83% 9.14% 9.08% 9.25% 9.44% Source: South African Reserve Bank


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Source: IntelliNews - Weekly Reports


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