Best in debt issuance: South Africa takes #1 again
South Africa named best in Sub-Saharan Africa
Debt issuance is a tricky term to understand for someone not up to date in the finance world, but in the general sense it can be seen as a loan transaction. Between governments and corporations, dealing with debt on an international scale, this is finance on a global level.
It can be defined as follows:
Debt issuance is when a company or government raise capital by borrowing money from bondholders (governments or institutions). The party borrowing the money (the issuer) agrees to pay the bondholder (the lender) a set interest rate over a defined period of time- to be paid back in full by the end of the period.
Named the top country in Sub-Saharan Africa for Debt Management or Sovereign Bond Issuance, by the Emerging Markets Newspaper, South Africa is recognized for the “quality” of its deal as well as the professionalism in operations. An affiliate if the International Monetary Fund, the Emerging Markets Newspaper’s award to South Africa is a testament to the success the country continues to boast on the global capital markets.
Showing off a deep capital market system, credible judiciary and strong banking system, South Africa enjoys a position which attracts investors, inspiring key confidence in the country’s future. Encouraged by regular engagements which investors are allowed to have with senior policy-makers, this ensures that there is constant and consistent communication on key policy issues which are of the highest importance to these investors.
Not only recognised in this light, South Africa has recently received a “tip of the hat” from the World Bank, acknowledging the country’s excellence in debt dynamics and composition.
“Events of this nature keep SA in the limelight given the ongoing funding programme of government domestic and international markets,” – Anthony Julies, National Treasury
Offering a high quality of deal, pertaining to price and duration, as well as being recognised for the level of professionalism in debt management –operational and sustainable composition of the sovereign debt portfolio, debt sustainability remains one of the key principles of government’s approach to revenue management.
No stranger to international accolades, South Africa was also recently voted as the number one place to visit in the world by the New York Times, as well as the design capital of the world a year or two back. With such potential, on top of an already strengthened system, South Africa seems to be the ideal place for investors of this magnitude.