South Africa's treasury increases weekly bond issuance

JOHANNESBURG: South Africa's treasury said on Thursday it would increase the amount it raises through weekly fixed-rate and inflation-linked bond auctions to compensate for lower tax revenues and the cost of support for troubled state power utility Eskom.

The National Treasury said that the fixed-rate bond auction amount would increase by 1.2 billion rand ($82.6 million) to 4.5 billion rand, effective Aug. 6.

The inflation-linked bond auction amount would increase by 280 million rand to 1.04 billion rand as of Aug. 16.

Last month Finance Minister Tito Mboweni said that South Africa would have to increase weekly bond issuance to "levels beyond what we had planned" as part of an increase in borrowing to make up for the lower tax revenues and higher Eskom costs.