South Africa’s Treasury on Wednesday reopened its $1,5-billion 2019 Eurobond issued in May to raise an additional $500-million, a spokesperson said.
“We have reopened the $1,5-billion bond we issued in May. We are looking for an additional $500-million. We are still busy with the transaction,” Treasury spokesperson Lindani Mbunyuza said, confirming an earlier Reuters report.
Results of the transaction should be available later on Wednesday, she said.
A source close to the deal said the tap was expected to be priced at a yield of 5,95%.
“These taps are easy … and the bond looks cheap,” said the fund manager.
The bond currently trades at a yield of 5,737% bid. The initial bond had a coupon of 6,875%.
Barclays and JPMorgan are arranging the deal with Standard Bank as co-lead arranger.
Barclays and JPMorgan could not be reached for comment. — Retuers