| Wed 9 Sep 2009, 8:00 | | NED/NBKP - Nedbank Group/Nedbank Limited - Issue of Nedbank Senior Unsecured |
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NED NBKP
NED NBKP
NED/NBKP - Nedbank Group/Nedbank Limited - Issue of Nedbank Senior Unsecured
Notes and Preference Shares
NEDBANK GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
JSE share code: NED
NSX share code: NBK
ISIN: ZAE000004875
("Nedbank Group")
NEDBANK LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1951/000009/06
JSE share code: NBKP
ISIN: ZAE000043667
("Nedbank")
ISSUE OF NEDBANK SENIOR UNSECURED NOTES AND PREFERENCE SHARES
Nedbank, a wholly-owned subsidiary of Nedbank Group, has successfully placed
over R5,5 billion of JSE listed senior unsecured notes ("senior notes") and
perpetual, non-redeemable, non-cumulative, non-participating preference shares
("preference shares") for settlement on Wednesday, 9 September 2009.
Strong demand across a broad investor base resulted in Nedbank`s inaugural issue
of senior notes being five times oversubscribed. In total, bids of R10 billion
were received for the senior notes, well over the original R2 billion target
issue size.
The senior notes allocated were a combination of fixed, floating rate and
inflation-linked notes issued under the existing JSE listed Domestic Medium Term
Note Programme ("DMTN"). A combined total of R5,4 billion was allocated across
the range of instruments, under Nedbank DMTN bond codes NBK1B, NBK2A, NBK2B,
NBK3A and NBKI1.
The senior notes have a maturity of between three and ten years, with the
majority of the appetite having been for the six year fixed rate note (R2
billion allocated) and the three and a half year inflation-linked note (R1,75
billion allocated). The balance of the senior notes (R1,65 billion allocated) is
comprised of the three and six year floating rate note, and ten year fixed rate
note.
Given the strong demand, the senior notes achieved competitive pricing, which
ranged from 150bps over 3 month Jibar for the three year floating rate
instrument, to 265bps over the government R207 bond on the ten year fixed rate
note.
The preference shares were a further issue of the existing Nedbank Tier 1
preference shares listed on the JSE ("tap issue"), under the share code NBKP,
details of which were provided in an announcement dated 14 August 2009.
In terms of the tap issue, 15 496 459 preference shares with an aggregate value
of R153 414 944,10 were allocated at a price of R9,90 per share being an
effective yield of 77% of the prime interest rate. The preference shares will be
allotted and issued, against receipt of payment from the relevant Central
Securities Depository Participants, to applicants on Wednesday, 9 September
2009.
The placement of the preference shares is part of Nedbank`s ongoing proactive
balance sheet management programme and serves to strengthen the bank`s Tier 1
capital adequacy ratio, whilst the placement of the senior notes lengthens the
liability maturity profile.
For further information please contact:
Trevor Adams (Nedbank Group Executive, Balance Sheet Management), tel: +27 (0)11
294 1141, email: trevoradams@nedbank.co.za
Michael Davis (Nedbank Group General Manager: Balance Sheet Management - Head:
Group Asset, Liability & Capital Management), tel: +27 (0)11 295 7282, email:
michaeldav@nedbank.co.za
Markus Borner (Nedbank Group Senior Manager: Balance Sheet Management - Head:
Strategic Capital Management),
tel: +27 (0)11 295 8616, email: markusb@nedbank.co.za
Sandton
9 September 2009
Sponsors to Nedbank Group in South Africa:
Merrill Lynch South Africa (Pty) Limited
Nedbank Capital
Sponsor to Nedbank Group in Namibia:
Old Mutual Investment Services (Namibia) (Pty) Ltd
Sponsors to Nedbank:
Investec Bank Limited
Nedbank Capital
Date: 09/09/2009 08:00:02 Produced by the JSE SENS Department.
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