News Column

South Africa raises EUR 159mn from three T- bond issues, yields fall.

February 26, 2014



South Africa borrowed on Tuesday, Feb 25, a total of ZAR 2.35bn (EUR 159mn) through the sale of three fixed-rate government bond issues, in line with the original target, data from the central bank showed. Yields were lower compared to the previous auction.

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 8.87%, down from 8.89% at the previous auction of the issue held on Feb 18. The total amount of bids placed declined 22% to ZAR 2.45bn.

The central bank sold another ZAR 800mn of its R2037 bond, which matures on Jan 31, 2037 and bears an annual coupon of 8.5%. It attracted bids worth ZAR 1.85bn, down 46% compared with the previous auction of the issue held on February 11, and was sold at a yield of 9.08%, down from 9.35%.

The central bank sold also ZAR 550mn of its R2048 bond, which matures on February 28, 2048 and bears an annual coupon of 8.75%, at a yield of 9.22%, down from 9.47% at the previous auction of the issue held on February 11. Bids worth ZAR 1.09bn were received, down 46% from the previous auction.



 



R2037, Jan 31, 2037, 8.5% coupon



R2037, Jan 31, 2037, 8.5% coupon



R2030, Jan 31, 2030, 8% coupon



R2030, Jan 31, 2030, 8% coupon



R2048, Feb 28, 2048, 8.75% coupon



R2048, Feb 28, 2048, 8.75% coupon



Auction date



25-Feb-14



11-Feb-14



25-Feb-14



18-Feb-14



25-Feb-14



11-Feb-14



Total amount allocated (ZAR mn)



800



800



1,000



1,000



550



550



Total bids received (ZAR mn)



1,850



3,395



2,445



3,140



1,085



1,995



Bid-to-cover ratio



2.31



4.24



2.45



3.14



1.97



3.63



Lowest bid



8.98%



9.26%



8.75%



8.90%



9.08%



9.36%



Highest bid



9.65%



9.59%



9.15%



9.37%



9.65%



9.70%



Clearing yield



9.08%



9.35%



8.87%



8.99%



9.22%



9.47%



Source: South African Reserve Bank


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Source: IntelliNews - Weekly Reports


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