| Tue 25 Jun 2002, 0:00 | | The Standard Bank Of South Africa Limited R1 Billi |
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The Standard Bank of South Africa Limited R1 billion Tier III Bond Issue
Standard Bank Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1969/017128/06)
South African Share Code : SBK
Namibian Share Code : SNB
ISIN : ZAE000038873
The Standard Bank of South Africa Limited R1 billion Tier III Bond Issue
The Standard Bank of South Africa Limited today launched a R1 billion Tier
III bond due 15 February 2005. The issue, the first Tier III issue by
Standard Bank and a first in South African Capital Markets, was placed with
a wide range of domestic institutional investors. "The bond issue was more
than twice oversubscribed and continues the successful programme over the
last two years of Standard Bank optimizing its capital structure by making
use of the full range of qualifying debt instruments. Due to the favourable
reception by investors, we decided to increase the issue size from R750
million to
R1 billion", says Simon Ridley, Group Financial Director at Standard Bank.
A Tier III bond is a debt instrument that can be issued by banks to
support trading activities and is included as part of overall regulatory
capital. With this instrument, Standard Bank has been able to supplement its
regulatory capital with a shorter dated, cost effective instrument, giving
Standard Bank more flexibility in its capital management. The bond was
launched at the prevailing R150 yield plus a spread of 90bp and has a
maturity of just over two and a half years. The bond pays a fixed semi-
annual coupon of 12.50%.
The bond was placed by JP Morgan Securities South Africa (Proprietary)
Limited and Standard Corporate and Merchant Bank, a division of The Standard
Bank of South Africa Limited (SCMB).
The issue will be listed on the Bond Exchange of South Africa. Details of
the bond issue are:
- Launch Date: 25 June 2002
- Settlement Date: 28 June 2002
- Bond Exchange Code: SBK4
- Nominal: R1 billion
- Maturity Date: 15 February 2005
- Coupon: 12.50%
- Status: Subordinated, Unsecured Tertiary Capital Notes
For further information please contact:
Simon Ridley, Group Financial Director, Tel: 011 636 3756
This announcement is not for release in the United States, Japan, France,
Canada or Australia.
This announcement does not constitute an offer of securities for sale in
the United States. The securities referred to herein have not been and will
not be registered under the US Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. The company does not
intend to offer the securities for sale in the United States.
There shall not be any offer, solicitation or sale of these securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of such
jurisdiction. Neither this announcement nor any copy hereof may be taken or
transmitted into the United States, Japan, France, Canada or Australia or
distributed directly or indirectly into the United States, Japan, France,
Canada or Australia.
Date: 25/06/2002 01:36:12 PM Produced by the SENS Department
