EXECUTIVE SUMMARY
A QUARTER MARKED BY THE RETURN OF SOUTH AFRICA TO THE EUROBOND MARKET (1/2)
South Africa is the 3rd African nation after Nigeria and Angola to issue a Eurobond since the start of Russia’s war with Ukraine. This is an operation amounting to $ 3.0 Bn, structured into two tranches with 10 years and 30 years maturities.
The first tranche concerns $ 1.4 Bn and offers an interest rate of 5.875% while the second tranche has a coupon of 7.3% for an amount of $ 1.6 Bn.
This latest international loan was very successful, as indicated by the amount raised, i.e. with a Demand of $ 7.1Bn,
equivalent to an oversubscription rate of 2.4x. It should be noted that the conditions for this issue are significantly less advantageous for the issuer than those of September 2019 operation. Recall that, this was carried out on the basis of a rate of 4.85% and 5. 75% for similar maturities (10 and 30 years). This situation find its origin in the rise in Central Bank key rates in order to counter increasing inflation pressures as well as the increase of risk aversion in the financial markets.
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