Mbabane – The Central Bank of Eswatini, acting as an agent for the government, has launched an auction for fixed coupon government bonds totaling E350 million to meet national budgetary requirements and develop the domestic secondary financial market.
The auction is scheduled for May 27, 2026, with the formal settlement date set for June 1, 2026. The issuance is divided into five separate bond categories with maturities ranging from three to fifteen years, offering fixed coupon rates between 10.00 percent and 12.25 percent.
According to the official call to tender, the specific breakdown of the issuance includes three allotments of E75 million each for the SG144, SG145, and SG146 bonds, which mature in March of 2029, 2031, and 2033 respectively. Another E75 million is allocated to the SG147 bond maturing in March 2036, while the remaining E50 million is allocated to the long-term SG150 bond maturing on June 1, 2041.
The bidding process will utilize a competitive multiple-bid auction model open to the general public, including individual, corporate, and institutional investors. Individual, non-competitive bidders can participate with a minimum bid size of E10,000, while institutional direct bidders face a minimum requirement of E5,000,000. All applications must be submitted through primary dealers, which comprise the four local commercial banks, before 10:00 AM on the auction date.
The central bank has retained a greenshoe overallotment option, reserving the right to allocate an additional amount of up to 100 percent of the original offer on each bond depending on market demand. Interest income generated from these paperless instruments is not subject to withholding tax, and payments will be disbursed bi-annually on March 31 and September 30 for most categories, except for the SG150 bond which pays on June 1 and December 1.
The bonds are issued under the E5 billion Note Programme of 2021 and are listed on the Eswatini Stock Exchange. Secondary market trading for these units will commence on Monday, June 8, 2026, in multiples of E10,000. Authorities cautioned that successful bidders who fail to honor their payment obligations on time will face disqualification from participating in the next subsequent bond auction.
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