CAPE TOWN, Dec. 9 (Xinhua) -- South Africa's National Treasury has raised 11.795 billion rand (about 692 million U.S. dollars) under the country's first Infrastructure and Development Finance Bond, a major step in boosting funding for priority public infrastructure.

According to a statement issued on Tuesday by the National Treasury, the auction attracted strong market interest, with bids exceeding 26 billion rand and achieving a 2.2-times subscription rate.

Treasury said funds raised through the new bond will be used exclusively to finance projects under the government's Budget Facility for Infrastructure (BFI), a mechanism within the budget process that supports priority infrastructure through rigorous project screening for public funding eligibility.

"During 2025, the government reconfigured the BFI to run four bid windows annually instead of just one. The four bid windows enable public institutions, including national departments, provinces, municipalities, and state-owned enterprises, to request funding for part of the cost of a project, as a basis to attract additional private funding," it said.

The program allows the South African government to improve the quality and scale of the public infrastructure pipeline, while embedding private sector participation in infrastructure delivery.

"As part of the funding strategy, the National Treasury plans to tap these bonds in future auctions to finance further BFI-aligned infrastructure projects. These reforms include the development of long-term financing instruments to crowd in investment for priority public infrastructure," it added. ■