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Formal commencement of voluntary split of the R186 bond into R010, R187 and R188
REPUBLIC OF SOUTH AFRICA
Department of National Treasury
Issuer code: BIRSA
("National Treasury")
FORMAL COMMENCEMENT OF VOLUNTARY SPLIT OF THE R186 BOND INTO R010, R187 AND R188
The National Treasury refers bondholders to the announcement published on 23 October 2025,
wherein holders of the R186 (10.50%) 2025/26/27 government bond were advised that the National
Treasury was in the process of finalising the operational framework for the voluntary split of the
R186 into three new series, namely R010, R187 and R188 (collectively, the "New Instruments").
The announcement also invited non-binding, indicative expressions of interest from
Primary Dealers ("PDs") and other institutional bondholders, indicating the nominal amount of
R186 holdings which they would elect to split.
The National Treasury hereby advises market participants of the formal commencement of the
voluntary split of the R186 bond effective Wednesday, 5 November 2025.
Bondholders of the R186 bond may now exercise their option to convert their holdings into equal
nominal portions of the New Instruments. The conversion will be effected on a dirty-price basis,
free-of-value ("FoV"), with settlement administered through Strate Proprietary Limited's ("Strate")
Converge platform ("Converge"). Further details regarding additional conversion windows and
associated timelines will be published in due course.
Submission requirements
• Investors must submit split instructions via their PDs.
• PDs are required to aggregate client instructions and submit a consolidated file to the National
Treasury's Debt Operations team at: Domestic&ForeignOps@treasury.gov.za
• PDs must utilise Converge for FoV settlement of the repurchase of the R186 bond and the
allocation into the New Instruments' International Securities Identification Numbers (ISINs), in
equal thirds.
• If a PD or client is not onboarded on Converge, they are required to indicate this in their
submission so that alternative operational arrangements can be coordinated with Strate and
the National Treasury's Debt Operations team.
Following receipt of submissions, the National Treasury will prepare and upload trade files,
including any Centralised Messaging Front End ("CMFE") top-ups, to Converge. Trades will auto-
match for non-Trade Reporting Parties ("TRPs"), while TRPs must manually confirm unmatched
trades. The National Treasury will provide reports to the South African Reserve Bank and
counterparties, monitor settlement to completion, adjust the R186 outstanding amounts and
communicate the updated issuance across the New Instruments and R186 to the JSE.
Trading and Settlement
The National Treasury will update the JSE in respect of the market operations following the
voluntary split of the R186 note into the New Instruments, in line with the current update process
for weekly auctions. The JSE will then update reference data and trading systems accordingly.
Secondary market trading and settlement of the new bonds will take place as per normal processes
on the Nutron trading engine. The R187 and R188 bonds will be included on the Bond Electronic
Trading Platform ("Bond ETP") for on-screen interbank trading on Thursday, 6 November 2025.
The R186 bond will remain on the Bond ETP until its redemption on Sunday, 21 December 2025.
Valuations
The JSE is currently conducting daily mark-to market ("MTM") valuations on the New Instruments.
The R010 bond will be valued as a zero-coupon bond as it matures on Sunday, 21 December
2025. The R187 and R188 bonds will be valued in line with the current end-of-day MTM valuation
process for liquid government bonds once included on the Bond ETP. The JSE will continue to
value the R186 as a liquid government bond until its redemption.
Indices
At 12:00 on Thursday, 6 November 2025, FTSE/JSE will conduct its fourth quarter reconstitution
for 2025. Effective from this date, the R186 bond will be removed from the ALBI20, ALBI201 and
ALBI20G Indices. The R188 bond will be automatically added to the ALBI20, ALBI201 and
ALBI20G as the replacement bond for the R186 bond.
The next reconstitution will occur at 12:00 on Thursday, 5 February 2026. The R188 bond will
remain in the ALBI and applicable sub-indices should it meet the index criteria.
Bond Futures
The R186 bond "Futures and Options" beyond Friday, 7 November 2025 have been suspended
and will not available for trading. The JSE will list the "Futures and Options" for the R187 and R188
upon request from market participants.
Important Notes
• The voluntary split window is effective Wednesday, 5 November 2025, with further windows to
be announced as required.
• The pricing mechanism ensures nominal conservation and cash neutrality at settlement.
• Submissions and aggregate outcomes may be published in summary form. Individual firm
submissions remain confidential between the PD, client, Strate and the National Treasury.
The National Treasury reserves the right to amend the provisional date and parameters as required
by market infrastructure readiness and regulatory confirmations.
Submission Details
Submissions should be sent to Domestic&ForeignOps@treasury.gov.za, copying
Mzizi.Dlamini@treasury.gov.za, with the subject line:
"R186 SPLIT - [PD name] - [Date]"
Each submission must include:
1. Participant name, contact details and PD J-code.
2. Nominal amount of R186 proposed to be split (ZAR).
3. Custody/clients account details for settlement planning (Strate account or participant code).
4. Any operational considerations (e.g. maximum ticket size, rounding preferences, book
closed considerations and confirmation of Converge onboarding status).
Response Deadline
All responses are to be submitted by Wednesday at 16:00 South African Standard Time (SAST)
each week. Splits will be conducted weekly on a Thursday.
For any enquiries, please contact the the Debt Issuance and Management team at:
DebtIssuanceandManagement@treasury.gov.za.
For further queries contact:
Terry Bomela-Msomi
Director: Treasury Funding
012 315 5753 / +27 66 289 2492
Pretoria
4 November 2025
Debt Sponsor
One Capital
Date: 04-11-2025 05:40:00
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