The Republic of South Africa trades inaugural Rand-denominated Sukuk senior unsecured Shari’ah Belief Certificates within the home capital markets
The Nationwide Treasury of the Republic of South Africa is happy to announce the profitable launch of the primary sovereign Rand-denominated Al-Ijarah Sukuk on the African continent via The RSA Home Sukuk Trustee (RF) Proprietary Restricted, as trustee of The RSA Home Sukuk Belief, a landmark transaction totaling ZAR20.386 billion.
The Senior Unsecured Shari’ah Belief Certificates, launched within the home capital markets, comprise 4 tranches with various maturities and will likely be listed on the Curiosity Price Market of the trade operated by the Johannesburg Inventory Alternate Restricted (JSE). This important achievement was realised with an environment friendly intra-day execution.
The Shari’ah Belief Certificates to be issued on Wednesday, 29 November 2023 include:
Inventory code
RS2029
RS2031
RS2034
RS2036
Tenor
5.3-year
7.3-year
10.3-year
12.3-year
Complete Bids Obtained (ZAR’m)
13 929
16 146
3 175
2 267
Quantity Allotted (ZAR’m)
7 490
8 866
2 479
1 551
Fastened Revenue Price
9.87%
10.64%
11.58%
11.90%
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The transaction was 1.74 instances over-subscribed with investor demand from a various investor base together with South African banks, giant Islamic funds and Islamic banks attracting 13 distinctive bidders who bid within the public sale.
This transaction marks a big milestone within the Authorities’s funding technique. This strategic improvement, first outlined within the 2021 price range, represents the fruits of practically two years of devoted effort. The launch of the Sukuk is a key step in broadening RSA’s investor base and enhancing our funding technique which has been historically reliant on Fastened Price Bonds (FRB), Inflation Linked Bonds (ILB) and Floating Price Notes (FRN).
This initiative is a testomony to the depth and liquidity of South Africa’s home capital markets, demonstrating Nationwide Treasury’s constitutional mandate and ongoing dedication to monetary innovation and market growth.
The Nationwide Treasury mandated Rand Service provider Financial institution, a division of FirstRand Financial institution Restricted, BNP Paribas S.A (Consortium), performing via its Bahrain Standard Wholesale Financial institution Department and The Normal Financial institution of South Africa Restricted as Joint Lead Managers. The appointment included every financial institution’s B-BBEE companions, THEZA Capital and Africa Rising Capital, respectively.
The RSA Home Sukuk Trustee (RF) Proprietary Restricted (as trustee of The RSA Home Sukuk Belief) Integrated within the Republic of South Africa Registration quantity: 2023/671880/07 Issuer code: ZA126120 (“Trustee”)
