JOHANNESBURG Jan 9 (Reuters) – South Africa plans to
issue about 1 billion dollars of a 12-year bond in the
international markets on Tuesday, traders said.
The bond is in line with the Treasury’s budget plans to tap
international markets for about a billion dollars a year for the
next two years after issuing 750 million dollars in a 30-year
bond in March 2011.
IFR Markets said the bond’s initial pricing had tightened 5
basis points to 270 basis points from 275 basis points earlier.
The deal is led by Barclays Capital and Citygroup, and
Treasury is expected to announce final pricing on Tuesday.
Analysts say investor demand might see the bond come to over 1
billion dollars.
The deal will be closely monitored by the market. Analysts
say South African state-owned companies such as Eskom are
expected to follow suit soon after.
(Reporting by Xola Potelwa)
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