Govt plans new bond issues to borrow money

Cape Town - During 2015 three new bonds will be issued, according to the Budget Review published with Nhlanhla Nene’s budget speech.

Government’s net borrowing requirement is expected to be R173.1bn in 2015/16, decreasing to R155.5bn in 2017/18.

The review states that South Africa’s deep and liquid domestic capital markets, and its access to international borrowing, continue to provide resources for government’s financing needs.

These instruments will broaden funding options, help to smooth the maturity profile of government debt and reduce short-term refinancing risk.

Net debt, provisions and contingent liabilities are expected to amount to 58.1% of GDP in 2015/16, decreasing to 57.3% in 2017/18.