Nedcor Bank Limited - Issue Of Subordinated Unsecu
Nedcor Bank Limited - Issue Of Subordinated Unsecured Callable Notes Ranking
As Secondary Capital
Nedcor Bank Limited
Nedcor Bank Limited ("Nedcor Bank") has placed Notes to a value of
R4 billion, as part of the fund-raising for the acquisition of BoE Limited
by Nedcor Limited. The Notes are unsecured and subordinated 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 at 150 basis points above the interpolated 5-year yield
of South African government bonds. The Notes were given a rating of AA- by
Fitch.
In terms of interest payments the Notes carry a fixed coupon of 13,15%,
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 9 July 2002, on which
date a listing of the Notes will commence on BESA under the stock code NED2.
Johannesburg 4 July 2002
Date: 04/07/2002 01:25:36 PM Produced by the SENS Department
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