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Praise for Treasury as it issues new $1.25bn bond

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Finance Minister Pravin Gordhan. (Photo: Bloomberg)
Finance Minister Pravin Gordhan. (Photo: Bloomberg)

Cape Town – National Treasury was praised for managing to attract interest in its new $1.25bn 10-year bond issuance on the international capital market on Friday.

South Africa issued its first international bond in two years on Thursday to fund its budget deficit that has increased to about 4% of gross domestic product in the last four years, Treasury announced on Friday.

The US dollar bond was priced at a coupon (interest rate) of 4.875%, which represents a spread of 335 basis points above the 10-year US Treasury’s benchmark bond, it said in a statement.

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