South Africa launches $2bn bond sale
South Africa has issued a global bond sale valued at $2 billion (€1.46 billion) in order to generate funding for its budget shortfall.The bond, registered in the US, has given the country a coupon of 5.5 per cent, which, according to National Treasury Director General Lesetja Kganyago, is the lowest it has ever achieved in the US market.
Mr Kganyago told Reuters that South Africa hopes to raise $2 billion, but entered the market with a plan of generating around $1.5 billion from the initial sale before returning for more funds. "This is basically pre-funding the 2010-11 fiscal year," he said.
Mr Kganyago added that 320 different investors had been allocated to the bond, the majority (59 per cent) of which are located in the US. Thirty-three per cent are based in Europe, four per cent in Asia and the remainder in Latin America.