National Treasury's weekly auction announcement post 2023 Budget
National Treasury's weekly auction announcement post 2023 Budget
Department of National Treasury
REPUBLIC OF SOUTH AFRICA
Private Bag X115, Pretoria, 0001. Tel: (+27 12) 315 5944. Fax: (+27 12) 407 9055
SENS ANNOUNCEMENT
WEEKLY AUCTION LEVELS ANNOUNCEMENTS POST BUDGET 2023
The 2023 Budget highlights the objective of financing the borrowing requirement at the
lowest possible cost within a set of strategic risk benchmarks. As such, the 2023 funding
strategy will include additional issuances into existing and new floating-rate notes as well
as introducing a domestic rand-denominated sukuk (Islamic bond). This shift represents
an evolution of the funding strategy that makes use of a set of tools to adequately optimize
the funding mix in order to meet the funding requirement.
The National Treasury weekly auction levels for fixed-rate bonds will remain unchanged at
R3 900 million. The non-competitive bond auction amount will remain at 50 per cent, split
between the Electronic Trading Platform and primary auction at 60 per cent and 40 per
cent, respectively.
The inflation-linked bond weekly auction level will be reduced by R200 million from
R1 200 million to R1 000 million effective from the auction conducted on the 31st March 2023.
The reduction in inflation-linked bond auction levels will create room for Government to re-
construct the Inflation Linked Bond curve in order to remedy some of the issues that have
been apparent in the current year’s auctions. The strategy also seeks to improve the
prominence of the floating-rate note in the overall portfolio and contain funding costs.
In addition, switches remain a part of the funding strategy to manage refinancing risk and
will be utilized when necessary. An announcement will be made prior to the
commencement of further switch auctions.
For further enquiries contact:
Terry Bomela - Msomi
Director: Debt Issuance and Management
012 315 5136 / +27 66 289 2492
Date: 23 February 2023
Date: 23-02-2023 09:20:00
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