REPUBLIC OF SOUTH AFRICA - Republic of South Africa Floating-Rate Note and Switch auction Announcement for 2022/23 financial year

Republic of South Africa Floating-Rate Note and Switch auction Announcement for 2022/23 financial year

National Treasury
REPUBLIC OF SOUTH AFRICA
Private Bag X115, Pretoria, 0001. Tel: (+27 12) 315 5640. Fax: (+27 12) 323 1783




SENS ANNOUNCEMENT


ISSUANCE OF A FLOATING-RATE NOTE AND REVISION OF THE SWITCH AUCTION
PROGRAMME


Government continues to support the development of South African debt capital markets
through a diversified portfolio of debt instruments. Going forward, this portfolio will include
a floating-rate note. The first floating-rate note auction has been scheduled for 06 July
2022.

The key features of the floating-rate note issuance include the following: (i) the floating-rate note will be available as collateral for repo transactions; (ii) the reference rate will be
the 3-month JIBAR; (iii) the frequency of floating-rate note auctions will be announced a
day after the initial auction through an auction calendar that will be uploaded on the
National Treasury's investor relations website; and (iv) the initial floating-rate note auction
will be conducted as an open tender without a pre-announced auction amount. Further
details will be available in the Applicable Pricing Supplement. In the event that the
reference rate changes during the life of the instrument, the National Treasury reserves
the right to change the reference rate from the 3-month Jibar to the new prevailing
reference rate.

In line with prudent debt management practice, the National Treasury will monitor risks
associated with the cost of servicing floating-rate debt through the weighted average time
to refixing measure, set between 3 and 12 months.

In addition, the preliminary outcome of the 2022/23 Budget has resulted in R24 billion
higher operational cash balances, mainly due to higher revenue collection. As a result,
National Treasury will not conduct further switch auctions related to the R2023 bond for
the remainder of the fiscal year. The balance will be used to support performance targets
related to the overall bond portfolio. As such, the current bond auction levels will remain
unchanged.


For further enquiries contact:
Terry Bomela-Msomi
Director: Debt Issuance and Management
012 315 5136 / +27 66 289 2492
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Date: 29 June 2022

Date: 29-06-2022 02:45:00
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