The South African government has returned to global markets with a dual-tranche dollar bond sale that raised $3.5 billion.
The National Treasury issued a 12-year bond priced at a 6.25% yield and a 30-year bond at 7.375%, according to bookrunner Deutsche Bank.
Both notes were $1.75 billion in size, drawing more than $13 billion in combined orders, signalling strong investor appetite despite a challenging global backdrop.
Deutsche Bank’s Maryam Khosrowshahi said the scale of demand reflected confidence in South Africa’s debt profile and the broader appeal of emerging-market assets.
The sale makes South Africa the latest African issuer to seize favourable market conditions, following recent Eurobond offerings by Nigeria and Angola.
Analysts say African sovereigns are tapping external markets while risk sentiment remains warm, even as borrowing costs stay elevated by historical standards.
South Africa last raised $3.5 billion in November 2023 through similar 12-year and 30-year maturities, underscoring its reliance on long-dated international funding.
The government hopes the new issuance will support budget financing needs and help stabilise debt levels that have climbed amid weak economic growth.
Market watchers note that investors are still drawn to South Africa’s deep financial institutions and transparent regulatory environment, even as fiscal pressures persist.
The Treasury has said it aims to balance external borrowing with domestic funding to manage costs and ensure a stable debt mix.