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FSR FSPP
FSR
FSPP - FirstRand Limited - Firstrand raises R5 Billion as First South
African Bank Taps European capital markets
FirstRand Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1966/010753/06)
ISIN: ZAE000070900
Share Code (JSE): FSPP
("FirstRand")
FIRSTRAND RAISES R5 BILLION AS FIRST SOUTH AFRICAN BANK TAPS EUROPEAN
CAPITAL MARKETS
FirstRand Limited announced today that it has successfully raised an
initial R5 billion (US$500 million) from the European capital markets,
utilizing subsidiary FirstRand Bank Limited`s Euro Medium Term Note (EMTN)
Programme. The EMTN programme is expected to raise a further R6 billion
over the next 2 to 3 years and FirstRand is the first South African banking
group to tap the European capital markets with this instrument.
Commenting Johan Burger, FirstRand CFO, said that the EMTN programme was a
key part of the Group`s funding strategy.
"FirstRand`s primary objective is to secure funding at an optimal cost from
diversified and sustainable funding sources and we believe the EMTN
programme achieves this objective. For example in this initial draw-down of
R5billion we placed with 41 investors across 16 countries."
Burger also said that the pricing of 50 bps over the Euro 3 month rate
reflected European debt investors` comfort with both South African risk and
FirstRand`s quality portfolio.
"The paper was placed in global banking rather than emerging market
portfolio`s which suggests that investors see the South African banking
sector on a par with other developed markets" he said.
Burger confirmed that further funding would be required to support the
Group`s growth strategy both domestically and internationally and that
FirstRand would continue to look at a range of instruments and funding
sources.
"The success of the EMTN programme allows us to establish the FirstRand
name in these very deep and liquid markets, which should create further
opportunities to use a range of similar instruments in the future" he said.
The European arrangers of the EMTN Programme were Royal Bank of Scotland
and Citi. Rand Merchant Bank acted as co-arranger.
Ends
Enquiries contact:
Sam Moss, Director Investor Relations
+2711 2821341
Sam.moss@firstrand.co.za
Sandton
25 June 2007
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 25/06/2007 17:42:18 Produced by the JSE SENS Department.
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