Eswatini govt issues new R4bn bond programme on South Africa's JSE

21st May 2024 By: Creamer Media Reporter

Eswatini govt issues new R4bn bond programme on South Africa's JSE

Photo by: Creamer Media

The Eswatini government has, through Absa Bank, recently issued a R4-billion bond programme on the JSE's debt board.

This new issuance is the latest bond to list under the Protea Bonds segment, which includes rand-denominated bond issuances by foreign governments on the JSE.

Eswatini’s first R400-million bond under the programme was issued at a yield to maturity of 11.875% a year and a maturity period of three years. The unsecured fixed rate notes programme involves an initial auction which took place on May 8 and will mature on May 8, 2027.

The listing on the JSE will provide investors with a convenient and transparent platform to trade and invest in Eswatini’s Protea Bond.

The bond issuance marks an important step in supporting regional African development through the local bond market.

“The listing on the JSE represents a key milestone for the government of the Kingdom of Eswatini and provides an opportunity for the kingdom to introduce itself to the international investment community. This programme will help us diversify our funding sources, contribute to regional economic integration initiatives and raise the necessary capital required for us to meet our infrastructure and developmental needs.

"Choosing to list in the South African market represents a demonstration of our confidence in the South African markets given our participation in the Common Monetary Area and strong economic links with South Africa,” says Eswatini Finance Minister Neal Rijkenberg.

“Sovereign bonds are an important tool for governments to raise funds for large and critical capital projects such as roads, power stations and hospitals. We are thrilled that the government of the Kingdom of Eswatini identified the JSE as the capital raising venue of choice, and we believe this issuance will enable the issuer to diversify its debt portfolio and access alternative funding,” adds JSE Capital Markets director Valdene Reddy.