The transaction was heavily oversubscribed, which saw the price tighten from its initial price guidance, and was the largest single US$ issuance by the SA in the international bond market in its history.
Commenting, Florian von Hartig, global head of debt capital markets at Standard Bank says: "Standard Bank have an unrivalled number of people on the ground in Africa, which means we have a deep and intimate understanding of the needs of the investor community there, and are able to offer innovative and meaningful solutions as a result."
Von Hartig continued: "This transaction was a hugely successful blow-out transaction for the Republic of South Africa, who are seasoned borrowers and who have tapped the market regularly since 1994. By actively engaging with key investors, the lead managers and the issuer were able to help drive the deal price toward the tight end of guidance and achieve a coupon of 5.5%, making this the sovereign's lowest coupon level. Ultimately this transaction will provide a valuable benchmark reference that will benefit other domestic borrowers looking at the off-shore markets for funding."
