South Africa successfully issues $1.25 billion bond on international markets
The bond was oversubscribed more than two times.South Africa has successfully issued a $1.25 billion (€1.1 billion) ten-year bond on the international capital market, which was more than two times oversubscribed.
The South African government said in a press release that the success of the transaction reflects investors' confidence in the country's "sound macro-economic policy framework and prudent fiscal management".
The proceeds of the bond will partially finance the government's foreign currency commitments.
The National Treasury announced in February that South Africa is planning to borrow $4.5 billion from global markets over the next three years.
The Africa Report said the Treasury warned that perceptions of risks associated with lending or investing in South Africa had increased over the last few months, raising borrowing costs.
Debt service costs are therefore expected to rise by 15.3 billion rand (€890 million) over the next two years.
This announcement comes after the country's finance minister Pravin Gordhan said the South African economy is 'in crisis', as the economy is struggling with shrinking growth, 25 per cent unemployment, and widespread poverty.