 |
|
|
|
|
|
 | The Standard Bank of South Africa Limited R2 billion Tier II Bond Issue |  |  |
 |
|
10 November 2004
The Standard Bank of South Africa Limited (SBSA) today placed a R2 billion subordinated bond due in November 2016 and callable in November 2011. The issue, which was significantly oversubscribed, qualifies as regulatory Tier II capital and forms part of SBSA's strategy to refinance R2,7 billion of SBSA's existing Tier II capital bonds, which are eligible to be called for redemption by SBSA during 2005.
The new bond (SBK5) was launched at a spread of 95bps over the benchmark R153 bond to yield a fixed semi-annual interest coupon of 9,5%; this is equivalent to a spread of 62bps over 3-month JIBAR based on current swap rates.
"We are very pleased with the market acceptance of this issue. The issue spread of 95bps is the lowest new issue spread obtained by a South African bank on a secondary capital bond in the domestic market. In view of the strong investor demand we increased the planned issue size from R1,5 billion to R2 billion," says Simon Ridley, Standard Bank Chief Financial Officer.
The bond was placed by Standard Bank Corporate and Investment Banking and JP Morgan Securities South Africa (Proprietary) Limited.
The issue will be listed on the Bond Exchange of South Africa. Details of the bond issue are:
- Launch Date: 10 November 2004
- Settlement Date: 17 November 2004
- Bond Exchange Code: SBK5
- Nominal: R2.0 billion
- Maturity Date: 17 November 2016
- Coupon: Fixed at 9,5% until 17 November 2011, thereafter floating at 3-month JIBAR plus 162bps until
maturity
- Issuer's call: 17 November 2011 or any interest payment date thereafter at the nominal amount.
Issuer calls on Tier II bonds are subject to prior written approval by the Registrar of Banks
- Status: Subordinated, qualifying Tier II capital issue
- Law: South African
- Denominations: R1 million
- Placement Agents: The Standard Bank of South Africa Limited and JP Morgan Securities South Africa
(Proprietary) Limited
- Underwriter: JP Morgan Securities South Africa (Proprietary) Limited
|
|
|
|
|
|
|
|
|
|
|
