South Africa sells ZAR 2.35bn in 2023, 2037, 2041 T-bonds, yields rise

By bne IntelliNews August 13, 2013

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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