Nedcor Bank Limited - Issue Of Subordinated Unsecu
AS SECONDARY CAPITAL
Nedcor Bank Limited ("Nedcor Bank") has issued notes to a value of R2
billion, which is the largest single issue of corporate bonds in South
Africa to date on the Bond Exchange of South Africa ("BESA"). The Notes are
unsecured and subordinate and accordingly rank as secondary capital under
the Banks Act for Nedcor Bank, the wholly-owned operating subsidiary of
Nedcor Limited.
The Notes, which have a ten year legal maturity but are callable in five
years, were priced to 77 basis points above the interpolated yield of South
African government bonds and at 110 basis points above the R150, which has
approximately three and a half years to run. Nedcor Bank increased the size
of the issue in order to meet investor demand for the Notes, which were
given a rating of AA- by Fitch. Notwithstanding the increase the issue was
significantly oversubscribed.
Nedcor Investment Bank acted as arranger and placement agent to the issue.
UBS Warburg and Edward Nathan & Friedland acted as independent adviser and
as corporate law advisers respectively to Nedcor Bank.
In terms of interest payments the Notes carry a fixed coupon of 11,3%,
payable semi-annually in arrears, during the first 5 years of the issue
whereafter they switch to a stepped-up floating rate of interest, which will
be paid quarterly in arrears. The settlement date is 20 September 2001, on
which date a listing of the Notes will commence on the BESA under the stock
code NED01.
Johannesburg
3 September 2001
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