National Treasury says South Africa has successfully placed five billion US dollars worth of bonds in international capital markets – in what is believed to be the biggest ever placement out of sub-Saharan Africa. The 10 year and 30-year bonds were almost three times oversubscribed.

Governments around the world issue bonds as a way to raise capital. They pay interest to investors. Treasury says in a statement that there was demand from regions including Europe, the US and Africa.

It says the successful bond placement is evidence of investor confidence in South Africa and the President Cyril Ramaphosa administration’s prudent financial management of the economy.