National Treasury director-general Dr Duncan Pieterse says there is strong interest from institutional investors to support government’s public investment ambitions, citing recent developments in relation to government’s issuance of infrastructure bonds.
“Following the R11.8-billion raised in the debut issuance of the new infrastructure bond on 8 December 2025, we conducted our first auction tapping these instruments on the 8th of July. R5-billion was on offer, but total bids of R17.8-billion were received and we decided to allocate R4.4-billion,” Pieterse said at an Absa conference.
“Both infrastructure bonds on auction cleared close to market, which is remarkable for new and relatively illiquid instruments,” he added, indicating that the next infrastructure bond auction would take place on October 21.
“These are the first steps in creating a new asset class that will build a market in infrastructure financing over time.”
The money would support projects under government’s Budget Facility for Infrastructure (BFI), which now had four annual bid windows and had approved R104-billion of projects since inception.
