By Rebecca Melvin
New York, May 15 – The Republic of South Africa priced $2 billion of notes on Tuesday, including $1.4 billion of 12-year notes and $600 million of 30-year notes (expected ratings: Baa3/BB/BB+), according to a final term sheet.
The $1.4 billion of 5 7/8% notes due 2030 priced at 99.992 to yield 5 7/8%, or a spread of 280.5 basis points over U.S. Treasuries. The yield was tight compared to initial price talk for a 6% area yield.
The $600 million of 6.3% notes due 2048 priced at 99.991 to yield 6.3%, or a spread over Treasuries of plus 310.1 bps. That was slightly tight compared to initial talk for a yield at 6 3/8%.
The size of the order book was about $4.3 billion.
Deutsche Bank AG, London Branch/Nedbank Ltd., J.P. Morgan Securities plc, Rand Merchant Bank and the Standard Bank of South Africa Ltd. were the joint bookrunners of the Securities and Exchange Commission-registered offering.
| Issuer: | Republic of South Africa
|
| Amount: | $2 billion
|
| Securities: | Notes
|
| Bookrunners: | Deutsche Bank AG, London Branch/Nedbank Ltd., J.P. Morgan Securities plc, Rand Merchant Bank and the Standard Bank of South Africa Ltd.
|
| Pricing date: | May 15
|
| Settlement date: | May 22
|
| Ratings: | Moody’s: Baa3
|
| S&P: BB
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
|
|
| 2030 notes
|
| Amount: | $1.4 billion
|
| Maturity: | June 22, 2030
|
| Coupon: | 5 7/8%
|
| Price: | 99.992
|
| Yield: | 5 7/8%
|
| Spread: | Treasuries plus 280.5 bps
|
| Talk: | 6% area
|
|
|
| 2048 notes
|
| Amount: | $600 million
|
| Maturity: | June 22, 2048
|
| Coupon: | 6.3%
|
| Price: | 99.991
|
| Yield: | 6.3%
|
| Spread: | Treasuries plus 310.1 bps
|
| Talk: | 6 3/8%
|
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