Mar­ket con­di­tions con­ducive for SA to is­sue $3bn bond

The Star Late Edition - - BUSINESS REPORT -

SOUTH Africa plans to use the op­ti­mism gen­er­ated by po­lit­i­cal changes in the coun­try to tap in­ter­na­tional bond mar­kets for up to $3 bil­lion (R35bn) shortly, the Na­tional Trea­sury said yes­ter­day. Tshep­iso Moahloli, chief di­rec­tor of li­a­bil­ity man­age­ment at the Trea­sury, said it could po­ten­tially is­sue in cur­ren­cies other than dol­lars and in seg­ments rather than $3bn all at once. “We do take op­por­tu­nity when the mar­ket is con­ducive, and cur­rently the mar­ket is con­ducive,” Moahloli said. She was speak­ing in Lon­don along­side Fi­nance Min­is­ter Nh­lanhla Nene. The coun­try’s fi­nal in­vest­ment-grade credit rat­ing, by Moody’s, is hang­ing by a sin­gle notch, with the agency due to pub­lish later this month the re­sults of a re­view for a pos­si­ble down­grade. Nene said he be­lieved South Africa was telling a “cred­i­ble” eco­nomic story. But he ac­knowl­edged it was un­clear whether Moody’s would cut the rat­ing to “junk”, and that the agency and pri­vate in­vestors were ask­ing ques­tions about the gov­ern­ment’s plan to trans­fer land from white to black own­ers. – Reuters

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