This week National Treasury borrowed US$5 billion (roughly R75bn) worth of bonds from international capital markets, with US$2 billion maturing in 2029 (10-year) and US$3 billion maturing 2049 (30-year). This is the biggest ever euro bond the country has issued, which Treasury has interpreted to mean that it’s a show of confidence on South Africa, and I agree in part. Raising funding has never really been an issue, it is the price of that debt that matters. Those outside financial circles have been talking and mostly bemoaning why Treasury is pilling on foreign debt when it needs to reduce it. ...
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