South Africa Sells $1.25 Billion Bond as Borrowing Costs Decline
- Eurobond offering is the government's first since July 2014
- Offer is timely, `attractive,' says Union Bancaire Privee
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South Africa is opening the market for the continent by selling its first Eurobond in almost two years as it seeks to capture lower borrowing costs to finance a widening budget gap.
The government sold $1.25 billion of notes due in 2026 at 335 basis points over Treasuries, according to a person with knowledge of the plan, who isn’t authorized to speak publicly and asked not to be identified. That’s down from about 350 basis points when it started marketing the deal, the person said. The spread compares with 307 basis points for securities due September 2025, data compiled by Bloomberg show.