(Reuters) – South Africa will start auctioning a new floating rate note next week, the National Treasury said on Wednesday, as part of efforts to expand its offering of debt instruments.
The Treasury said in a statement that the first auction would be conducted as an open tender without a pre-announced amount on July 6.
The floating rate note will be available as collateral for repurchase agreement transactions and its reference rate will be the three-month Johannesburg Interbank Average Rate (JIBAR), a money market reference rate used in South Africa.
The frequency of the floating rate note auctions will be announced a day after the initial auction.
The statement also said the Treasury would not conduct switch auctions related to its 2023 bond for the remainder of the current fiscal year, after higher-than-predicted revenue collection in the 2021/22 fiscal year that ended in March.
(Reporting by Anait Miridzhanian; Editing by Alexander Winning)
