South Africa's National Treasury said on 9 December 2025 that it had raised ZAR 11.795bn through its inaugural Infrastructure and Development Finance Bond, with proceeds set aside to finance projects under the government's Budget Facility for Infrastructure (BFI).
The bonds were sold through a National Treasury auction that attracted bids of more than ZAR 26bn, a subscription rate of 2.2 times the amount allocated.
TWO TRANCHES
The issue was split across two new instruments. The 10-year RI2036 raised ZAR 6.996bn at a yield of 8.575%, while the 15-year RI2041 raised ZAR 4.799bn at 9.13%.
The Treasury said it plans to tap both bonds at future auctions to finance further BFI-aligned infrastructure projects.
BUDGET FACILITY FOR INFRASTRUCTURE
The BFI is the government mechanism used to support national priority infrastructure projects, with proposals screened for eligibility before funding is approved. The Treasury reconfigured the facility in 2025 so that it now operates four bid windows a year instead of one, allowing national departments, provinces, municipalities and state-owned enterprises to apply for partial project funding intended to help attract additional private investment.
The dedicated bond forms part of the reforms set out in the 2024 Medium Term Budget Policy Statement to increase investment in infrastructure that supports economic growth and service delivery. The RI2036 and RI2041 were the first bonds issued under the new instrument, and the Treasury's stated plan to tap them means further amounts can be added to the same two lines at later auctions, with the proceeds likewise directed to BFI-aligned projects.
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