Barclays Africa Debt Sale Misses Target as Banks Issue More
- Bank raises less than half of 1.5 billion rand it offered
- Bond sales by lenders doubled this year as Basel rules loom
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Barclays Africa Group Ltd. sold less than half its target in a bond auction as a wall of debt issuance by South African banks and the impending exit of its U.K. parent, Barclays Plc, damped demand.
Barclays Africa offered 1.5 billion rand ($113 million) of notes on Monday but raised only 642 million rand within price guidance, according to Deon Raju, head of treasury at the Johannesburg-based lender. The debt was priced at a spread of 378 basis points more than the benchmark three-month Johannesburg Interbank Agreed Rate. That compares with 2.15 billion rand of private placements at a spread of 400 basis points during the second half of last year, he said.