South Africa’s National Treasury on Tuesday, 9 December 2025, announced that it had raised R11.795 billion through the country’s first Infrastructure and Development Finance Bond, following a highly subscribed auction that drew over R26 billion in bids.
The funds will be channelled exclusively into projects under the Budget Facility for Infrastructure (BFI), with the issuance split between the RI2036 bond at 8.575%, and the RI2041 bond at 9.13%.
Treasury said the bond forms part of reforms introduced in the 2024 Medium-Term Budget Policy Statement, aimed at strengthening South Africa’s infrastructure pipeline and stimulating economic growth. In 2025, government restructured the BFI to run four bid windows annually, allowing national and provincial departments, municipalities and state-owned enterprises to seek partial public financing to leverage additional private investment.
The department noted that the inaugural auction was aligned with market rates to optimize borrowing costs, adding that future taps of the bonds will fund more BFI-aligned projects. Treasury said the broader strategy is to develop long-term financing instruments capable of crowding in private capital and improving the quality, scale and delivery of priority public infrastructure.