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South Africa raised INR 11.795 billion (USD 693 million) through its first infrastructure and development finance bonds, attracting bids of more than INR 26 billion. The funding came through 10-year and 15-year bonds, priced at interest rates of 8.575% and 9.13%. The issuance is part of a wider plan to channel over INR 1 trillion into public infrastructure over the next three years. The proceeds are expected to support large projects such as the Tygerberg Hospital redevelopment, a major Limpopo water pipeline and upgrades to Transnet’s coal and iron ore corridors.
South Africa issued its first set of infrastructure and development finance bonds earlier today, raising INR 11.795 billion (USD 693 million) through 10-year and 15-year maturities. According to the National Treasury, investor interest was strong, with bids crossing INR 26 billion and resulting in a subscription rate of 2.2 times. Advertisement
The government plans to channel the proceeds into priority infrastructure, a category that has faced long-standing funding gaps. The broader target of allocating more than INR 1 trillion to public infrastructure over the next three years remains central to the country’s economic agenda.
The Treasury confirmed that INR 6.996 billion was mobilized through the 10-year bond at an interest rate of 8.575%, while INR 4.799 billion came from the 15-year instrument at 9.13%. These rates reflect the current cost of long-term borrowing in a market where investors continue to seek stable, government-backed returns.
Authorities indicated that the raised capital may be directed into major projects, including the redevelopment of Tygerberg Hospital in Cape Town, a new water pipeline project in Limpopo, and upgrades to Transnet’s coal and iron ore export lines. These projects have been discussed in previous budget outlines but lacked dedicated capital until now.
South Africa also secured USD 3.5 billion from international markets last week through two newly issued dollar bonds, adding to the government’s overall funding pool at a time when the country is working to strengthen its infrastructure base and support long-term growth.
Source Reuters
5th Jun, 2025
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