South Africa to borrow $6 billion from international markets: Treasury

CAPE TOWN (Capital Markets in Africa) – South Africa plans to borrow $6 billion from international markets over the next three years, with foreign currency bond issuance increasing by $2.1 billion in the current financial year, the Treasury said on Wednesday.

Treasury has already issued a pair of dollar bonds in overseas capital markets worth $3 billion in September and $1.5 billion in April.

It said the key driver of increased debt were the weaker fiscal position and the weaker rand.

Foreign loan debt would rise to 10.6 percent of gross domestic product in 2016/17 from 9.9 percent in 2015/16.

Treasury said short-term borrowing in local markets would average 25 billion rand per fiscal year in the medium term, with net issuance in the current year increasing by 15 billion rand to 40 billion rand to fund the higher budget deficit.

Source: Reuters Africa News