South Africa borrowed on Tuesday (August 13) a total of ZAR 2.35bn (EUR 178mn) through the sale of three fixed-rate government bond issues, in line with target, data from the central bank showed. Yields rose from the previous auctions.
The central bank sold ZAR 1bn of its R2023 bond issue, which bears an annual coupon of 7.75% and matures on Feb 28, 2023, at a yield of 7.88%, up from 7.86% at the previous auction of the issue, held on July 30. The bond attracted bids worth ZAR 2.47bn, by 39% less than at the previous auction.
The central bank sold also ZAR 350mn of its R2037 bond issue, which matures on Jan 31, 2037 and bears an annual coupon of 8.5%. It attracted bids worth ZAR 1.11bn, by 21% more than at the last week’s auction, and was sold at a yield of 9.28%, up from 9.11%.
The central bank sold also ZAR 1bn of its R214 bond, which carries an annual coupon of 6.5% and matures on Feb 28, 2041, at a yield of 9.39%, up from 8.85% at the previous auction on July 16. Bids worth ZAR 1.66bn were received, up 16% from the previous auction.
| R2023, Feb 28, 2023, 7.75% coupon | R2023, Feb 28, 2023, 7.75% coupon | R2037, Jan 31 2037, 8.5% coupon | R2037, Jan 31 2037, 8.5% coupon | R214, Feb 28, 2041, 6.5% coupon | R214, Feb 28, 2041, 6.5% coupon | |
| Auction date | 13-Aug-13 | 30-Jul-13 | 13-Aug-13 | 6-Aug-13 | 13-Aug-13 | 16-Jul-13 |
| Total amount allocated (ZAR mn) | 1,000 | 1,000 | 350 | 350 | 1,000 | 850 |
| Total bids received (ZAR mn) | 2,470 | 4,055 | 1,110 | 920 | 1,660 | 1,380 |
| Bid-to-cover ratio | 2.47 | 4.06 | 3.17 | 2.63 | 1.66 | 1.62 |
| Lowest bid | 7.80% | 7.79% | 9.22% | 9.03% | 9.17% | 8.68% |
| Highest bid | 8.30% | 8.15% | 9.70% | 9.25% | 9.85% | 9.07% |
| Clearing yield | 7.88% | 7.86% | 9.28% | 9.11% | 9.39% | 8.85% |
| Source: South African Reserve Bank | ||||||
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