<\/p>\n
National Treasury still intends launching a rand-denominated Islamic bond sometime in the current 2023\/4 fiscal year, but the timing of the launch is uncertain. <\/p>\n
In November, 2021 the intention was to still launch it in the 2021\/22 fiscal year as a way of diversifying the debt portfolio and introducing a new set of savers into its funding universe.<\/p>\n
It has previously issued a $500 million (R9.1 billion) sukuk bond in 2014, when it became the first African nation to issue a sovereign shariah-compliant bond. <\/p>\n
At the time it received subscriptions worth $2.2bn and it will be hoping for a similar over-subscription when it launches its rand-denominated bond.<\/p>\n
Treasury said at the time that the decision to issue an Islamic bond was informed by a drive to broaden the investor base and to set a benchmark for state-owned companies seeking diversified sources of funding for infrastructure development.<\/p>\n
It said the sukuk bond had an investor distribution consisting of 59% from the Middle East and Asia; 25% from Europe; 8% from the US; and the balance from the rest of the world.<\/p>\n
S&P Global Ratings cut South Africa\u2019s credit rating to junk in April, 2017 when Pravin Gordhan was fired as finance minister by former president Jacob Zuma.<\/p>\n
In 2018, the Treasury issued $2bn in foreign bonds, despite the S&P downgrade and the transaction was oversubscribed.<\/p>\n
Since 2020, Treasury has received various loans from international development institutions such as the International Monetary Fund and the World Bank to provide Covid-19 relief as well as loans for a just energy transition.<\/p>\n
In fiscal year 2022\/23, Treasury received R64.5bn in foreign loans from R31.3bn in 2021\/22. It expects to only receive R44.4bn in 2023\/24.<\/p>\n
BUSINESS REPORT<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" National Treasury still intends launching a rand-denominated Islamic bond sometime in the current 2023\/4 fiscal year, but the timing of the launch is uncertain. In November, 2021 the intention was to still launch it in the 2021\/22 fiscal year as a way of diversifying the debt portfolio and introducing a new set of savers into […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[1402,13904,13906,8886,13905,7023],"class_list":["post-170068","post","type-post","status-publish","format-standard","category-politics","tag-bond","tag-intends","tag-islamic","tag-launching","tag-randdenominated","tag-treasury"],"yoast_head":"\n