By Thebe Mabanga
The National Treasury has successfully raised nearly R11.8-billion through South Africa’s inaugural Infrastructure and Development Finance Bond
The auction for the bond was more than twice oversubscribed at R 26 billion, indicating a strong appetite for South African bonds but also infrastructure financing.
The funding will be accessible to all spheres of government, including municipalities, as well as by State Owned Enterprises (SOEs).
“This issuance forms part of a suite of reforms, first outlined in the 2024 Medium Term Budget Policy Statement, to boost investment in the infrastructure required to drive higher economic growth and improve service delivery,” Treasury said in a statement.
The bond will support projects under the Budget Facility for Infrastructure (BFI) — a mechanism within the budget process that screens and supports nationally prioritised public infrastructure projects.
Established in 2016 and updated in the 2024 MTBPS, the BFI now has four bid windows a year, enabling national and provincial departments, municipalities and SOEs
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