South Africa attracts $500 million in global funding push

At a Glance

• South Africa’s $500 million funding plan draws over 100 global investor proposals.
• Treasury balances ESG-linked financing with traditional Eurobond strategy for diversification.
• Analysts expect more hard-currency bond issues amid strong market appetite.

South Africa’s National Treasury has attracted international interest with a $500 million foreign-currency financing initiative, drawing in over 100 global proposals as the country pushes to diversify its funding sources beyond traditional Eurobond issuances.

Announced in July 2025, the initiative aims to tap into alternative finance, including bilateral term loans, private placements, structured notes and instruments tied to environmental, social, and governance (ESG) goals.

Treasury balances ESG goals with Eurobonds

Terry Bomela-Msomi, Director of Treasury Funding & Capital Markets, said market response has been “positive,” with both buy-side and sell-side institutions, boutique banks, and non-financial lenders lining up. ESG-linked proposals stand out.

Despite the focus on new financing mechanisms, the government confirmed that Eurobonds will remain part of its broader funding strategy, though as a complementary tool rather than the centerpiece.

Stronger market appetite lifts debt ambitions

With favourable borrowing conditions for African sovereigns and growing investor appetite for sustainable and diversified financing, South Africa is confident the $500 million target will be comfortably met.

Analysts say additional hard-currency bond issuance could follow during the medium-term budget policy statement scheduled for later this year.