News Column

South Africa raises EUR 156.4mn from three T- bond issues, yields mixed

February 12, 2014



South Africa borrowed on Tuesday, Feb 11, a total of ZAR 2.35bn (EUR 156.4mn) 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 1bn of its R2030 bond, which matures on Jan 31, 2030 and bears an annual coupon of 8%, at a yield of 9.15%, lower from 9.29% at the previous auction of the issue held on February 4. The total amount of bids placed rose 58.5% to ZAR 4.065bn.

The central bank sold another ZAR 800mn of its  R2037 bond issue, which matures on Jan 31, 2037 and bears an annual coupon of 8.5%. It attracted bids worth ZAR 3.395bn, down 20.1% compared with the previous auction of the issue held on January 28, and was sold at a yield of 9.35%, down from 9.42%.

The central bank sold also ZAR 550mn of its R2048 bond, which carries an annual coupon of 8.75% and matures on Feb 28, 2048, at a yield of 9.47%, up from 9.25% at the previous auction of the issue held on January 21. Bids worth ZAR 1.995bn were received, up 7.5% 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



11-Feb-14



4-Feb-14



11-Feb-14



28-Jan-14



11-Feb-14



21-Jan-14



Total amount allocated (ZAR mn)



1,000



1,000



800



1,000



550



800



Total bids received (ZAR mn)



4,065



2,565



3,395



4,250



1,995



1,855



Bid-to-cover ratio



4.07



2.57



4.24



4.25



3.63



2.32



Lowest bid



9.08%



9.18%



9.26%



9.35%



9.36%



9.10%



Highest bid



9.40%



9.52%



9.59%



9.70%



9.70%



9.50%



Clearing yield



9.15%



9.29%



9.35%



9.42%



9.47%



9.25%



Source: South African Reserve Bank



 



 



 



 



 


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Source: IntelliNews - Weekly Reports


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