Investors show confidence in government’s E200m bond

EZULWINI – Investor confidence in Eswatini’s economic outlook remains robust.

This is evidenced by the Central Bank of Eswatini (CBE), on behalf of government, successfully auctioned an 8-year infrastructure bond valued at E200 million on Tuesday.

The bond, which carries a fixed coupon rate of 11.25 per cent per annum, was aimed at raising funds for infrastructure projects that will drive economic growth, business development, and social upliftment.

According to the CBE, the auction attracted an impressive E275.27 million in bids – a bid-to-cover ratio of 1.38, indicating that investor demand significantly outstripped the amount on offer.

Ultimately, E200.27 million was allotted, achieving an allotment rate of 100.1 per cent.

This strong uptake reflects growing market confidence in government-backed instruments and in the overall stability of Eswatini’s financial sector.

“The positive outcome of this auction underscores sustained investor trust in the kingdom’s fiscal management and the strategic role of infrastructure investment in driving national development,” said a CBE.

The proceeds from this bond issuance will be channelled towards key infrastructure projects, which government views as central to boosting productivity and attracting private sector participation.

These include roads, energy, water and social infrastructure, which are essential to stimulating economic activity and improving service delivery across the country.

Financial analysts noted that long-term bonds such as this one provide a reliable investment option for pension funds and institutional investors while helping government mobilise capital for national priorities.

“The 11.25 per cent fixed rate offers an attractive return, especially in a tightening global interest rate environment, while ensuring that critical infrastructure initiatives continue without delay,” commented an economist familiar with the auction.

The infrastructure bond is expected to complement Eswatini’s ongoing efforts to strengthen fiscal sustainability, enhance domestic resource mobilisation and accelerate development under the National Development Plan.

The CBE auction comes at a time when Eswatini’s corporate bond market continues to show healthy levels of activity, despite a slight quarterly dip in total bonds outstanding.

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