By Christine Van Dusen
Atlanta, July 17 – South Africa priced a two-tranche issue of €500 million 3¾% notes due Julye 24, 2026 and $1 billion 5 3/8% notes due July 24, 2026 (expected ratings: Baa1/BBB-/BBB) in a Securities and Exchange Commission-registered deal, a market source said.
The €500 million of 3¾% notes due 2026 priced at 99.298 to yield 3.284%, or mid-swaps plus 225 basis points. The notes were talked at a spread in the 240 bps area.
The $1 billion 5 3/8% notes due 2044 priced at 98.303 to yield 5.491%, or Treasuries plus 220 bps. Talk was set in the 240 bps area.
Barclays, Citigroup and Rand Merchant Bank were the lead managers. Investec was the co-lead manager.
The proceeds will be used to repay maturing debt and for general governmental purposes.
| Issuer: | South Africa
|
| Description: | Notes
|
| Bookrunners: | Barclays, Citigroup and Rand Merchant Bank
|
| Co-manager: | Investec Bank plc
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| Trade date: | July 17
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| Settlement date: | July 24
|
| Expected ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB
|
| Distribution: | Securities and Exchange Commission registered
|
|
|
| Twelve-year euro notes
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| Amount: | €500 million
|
| Maturity: | July 24, 2026
|
| Coupon: | 3¾%
|
| Price: | 99.298
|
| Yield: | 3.824%
|
| Spread: | Mid-swaps plus 225 bps
|
| Price talk: | Mid-swaps plus 240 bps area
|
|
|
| Thirty-year dollar notes
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| Amount: | $1 billion
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| Maturity: | July 24, 2044
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| Coupon: | 5 3/8%
|
| Price: | 98.303
|
| Yield: | 5.491%
|
| Spread: | Treasuries plus 220 bps
|
| Price talk: | Treasuries plus 240 bps area
|
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