July 01, 2019 | Cbonds
|We are pleased to announce that Cbonds is expanding the coverage of international markets. Domestic corporate bonds of the Republic of South Africa have been added to the database. 2 351 issues of the domestic corporate bonds of South Africa are available at Cbonds website, with 1 494 issues outstanding. |
Bond Market Profile
The corporate bond market of South Africa is dominated by the floating rate instruments – they amount to more than 71% of the outstanding securities. An example of such issue is Investec Bank Limited, FRN 19aug2020, ZAR. The most frequently used reference benchmark is the three-month Johannesburg Interbank Average Rate – 3M JIBAR.
Common instruments for the South African market are inflation indexed bonds (e.g., Absa Bank, 5.5% 7dec2028, ZAR) and structured products that depend on the performance of the underlying asset (FirstRand Bank, 0% 19mar2020, ZAR). The most popular type of structured products is a credit-linked note that depends on the occurrence of a certain credit event. An example of such issue is FirstRand Bank, 3.337% 6nov2023, ZAR.
The main issuers of the South African bonds are companies of the financial sector, where the most active participants are Standard Bank, FirstRand Bank and Absa Bank.
In terms of development, the South African financial market has remained a leader among the African countries in recent years. According to the report of the World Economic Forum 2018, it ranks 18th in the world in terms of Financial Market Development Index.
According to the World Federation of Exchanges, Johannesburg Stock Exchange (JSE) is the biggest exchange in Africa in terms of capitalization and the world’s eighteenth-biggest. FTSE/JSE Africa All Shares Index is the main benchmark of the stock market. At the beginning of 2018, index reached its historic high and rose beyond 61 000 basis points – that way the market reacted to the resignation of President Jakob Zuma. However, the bullish trend at the market lasted for a short time – at the year of 2018 index lost 11%, which is the worst performance since the crisis of 2008.
The economy of the most southern country of the African continent remains one of the most competitive in the region. According to the report Global Competitiveness Index 2018, South Africa ranks second in the Sub-Saharan Africa after Mauritius.
At year-end 2018, its gross domestic product increased by 0.8%. According to the World Bank's forecast, moderate economic growth will continue in 2019 and is expected to reach 1.3%. In autumn 2018, the South African Reserve Bank increased its key interest from 6.5% to 6.75% for the first time in two years. Tightening of the monetary policy permitted to reduce the inflation rate at the end of 2018 to 4.4%.
The country's economic growth is constrained by rampant unemployment, poverty and inequality, poor infrastructure, inefficient public sector and political instability. The crisis of the executive government of South Africa, triggered by factional fights in the ruling party and corruption scandals, was reflected in the downgrade of the sovereign credit ratings of South Africa by the international agencies to non-investment grade – S&P and Fitch downgraded the rating from BBB- to BB+, and Moody's – from Baa2 to Baa3.
Traditionally, daily quotes, bond calculator, basic parameters of placements, cash flow and issue documents are available for all the issues.
Please note that access to these data is included in the Cbonds-Premium tariff. Information is available in eight languages: Russian, English, Italian, German, Spanish, Polish, Chinese and Ukrainian.
To all participants of the primary bonds and Eurobonds market we suggest cooperation. On the quotes’ publication issue please contact us via firstname.lastname@example.org.
Company: Cbonds Group
|Full company name||Cbonds Ltd|
|Country of risk||Russia|
|Industry||Information and High Technologies|