South Africa and Nigeria bonds aim to raise $2.5bn

Mar 11, 2010

South Africa and Nigeria are to issue sovereign bonds with a combined value of $2.5 billion (€1.8 billion).

According to Business Daily Africa, Nigeria is seeking to raise $500 million, while South Africa's bond - which was announced on March 2nd - is valued at $2 billion.

Nigeria's federal parliament needs to approve the move before the bond can be launched, while South Africa's issue comes after Finance Minister Pravin Gordhan stated in the Budget last month that the country's government will be generating funding from the global bond market on a more regular basis over the coming years.

National Treasury Director General in South Africa Lesetja Kganyago recently told Reuters that the bond - which has been given an A3 rating by Moody's Investors Service - is to be used to pre-fund the next fiscal year.

Meanwhile, officials in Kenya, who postponed a planned $500 billion eurobond due to the worldwide financial turmoil, have said that this will be issued once a substantial improvement is seen in the global markets it will be relying on for capital.