Personal Business

National Treasury Bond

Standard Bank recently partnered with the National Treasury to raise a bond of $2-billion, its largest global bond issue yet.

The success of this $2-billion deal was owed largely to the good working relationship between Standard Bank’s Corporate and Investment (CIB) teams in South Africa, the United States, United Kingdom and Asia.

The deal was executed within 48 hours despite a shaky global sovereign background. South Africa however managed to distinguish itself as a unique credit and as a result, price guidance was revised down twice amid significant demand for the issue.

We can expect the $2-billion to go a long way in funding schools and hospitals, as well as helping create much-needed jobs.

By appointing Standard Bank to be lead manager, the South African government demonstrated confidence in our ability to lead a transaction of this nature and achieve an unprecedented level of success.

Summary

Sector expertise Infrastructure
Client National Treasury
Deal size USD2-billion
Duration 48 hours
Key features Standard Bank Group was mandated as joint lead manager with Deutsche Bank and Nedbank Capital as a co-lead manager on the deal.
Connections Deutsche Bank; Nedbank Capital
Noteworthy The National Treasury managed to raise the full US$2 billion, which is the single largest bond ever raised. Raising this $2-billion from foreign investors is an important element of the variety of ways that government funds its investment programmes and other operations.