Mbabane — The government of the Kingdom of Eswatini, through the Central Bank of Eswatini (CBE), has announced the launch of a fixed-coupon government bond auction valued at E200 million.
According to the CBE the initiative is aimed at strengthening the domestic capital market while meeting the country’s budgetary financing needs.
The auction, scheduled for 28 January 2026, will reopen four existing government bond instruments across medium-to-long-term maturities, offering investors a range of fixed returns.
Each bond will be issued in tranches of E50 million, bringing the total amount on offer to E200 million.
The bonds on offer include SG118, maturing on 30 June 2028 with a fixed coupon of 10.50%; SG119, maturing on 30 June 2030 at 11.00%; SG120, maturing on 30 June 2032 at 11.50%; and SG121, maturing on 30 June 2035 with a coupon of 12.00%.
According to the CBE, the bonds will be issued using a competitive multiple-bid auction model, open to individual, corporate and institutional investors.
Applications must be submitted through the country’s four commercial banks, which act as Primary Dealers. All bids must be captured on the Central Securities Depository (CSD) system by 10:00am on auction day.
The settlement date for successful bids is 2 February 2026, with the bonds issued in paperless form through the CSD. Interest payments will be made semi-annually on 30 June and 31 December, and interest income will not be subject to withholding tax.
In a further incentive to investors, the government has retained a greenshoe option, allowing it to allocate up to 100% additional issuance per bond, should demand exceed expectations.
The CBE said the issuance forms part of the government’s broader strategy to develop the secondary market, establish fair market-based pricing for government securities, and enhance financial intermediation, while also providing a reliable funding source for fiscal requirements.
The bonds are issued under the E5 billion Government Note Programme (2021) and are listed on the Eswatini Stock Exchange, with secondary market trading set to commence on 2 February 2026 in minimum denominations of E10,000.
Minimum bid sizes have been set at E10,000 for individual non-competitive bidders, while institutional direct bidders must submit bids of at least E5 million. Yields to maturity must be quoted in multiples of 0.005%.
The Central Bank has cautioned that successful bidders who fail to meet their settlement obligations will be barred from participating in one subsequent bond auction.
Interested investors have been advised to contact their commercial banks for application forms or reach out directly to the CBE’s Financial Markets Department for further information.
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