Business Report 7 November 2012.
Robert Brand and Mike Cohen
FIRMs funding R47 billion of local wind and solar energy projects are driving up prices to lock in long-term borrowing costs as they seek protection from fluctuating interest rates.
Payments to secure 10-year rates jumped 69 basis points to a four-month high of 7.13 percent on Monday from a record low in July. The premium of 10-year swaps over two-year contracts widened 18 basis points since October, indicating that demand for the longer-term contracts outstripped shorter-dated swaps. The spread for similar contracts in Russia has declined 32 basis points…