| Thu 1 Feb 2024, 11:18 | | Tap Issue Announcement |
|
Tap Issue Announcement
AGRARIUS SUSTAINABILITY ENGINEERED (RF) LIMITED
Incorporated in the Republic of South Africa with limited
liability
(Registration Number: 2022/521382/06)
JSE Alpha Code: "AGRIA"
ISIN: ZAG000191214
LEI: 378900376E9ADF2BD166
("Agrarius")
TAP ISSUE ANNOUNCEMENT
The JSE Limited has granted approval for a tap issue listing to Agrarius under its Shariah compliant,
sustainability focussed asset-backed note programme dated 19 September 2022, focussed on
transactions in the agriculture sector value chain.
The salient details of the tap issuance are as follows:
Authorised programme size: ZAR 10,000,000,000
Aggregate principal amount of this ZAR 100,000,000 (one hundred million Rand)
tranche:
Total amount listed after this ZAR 600,000,000 (six hundred million Rand)
issuance:
Instrument type: Floating Rate, Sustainability-linked Asset-Backed Notes,
self-labelled as Sukuk Notes by Agrarius and certified
Shari'ah compliant by the 27four Investment Managers
Shari'ah Advisory Committee
Bond code: AGRIA1
Nominal Amount per Note: ZAR 1.00
Specified Denomination: ZAR 1,000,000
Issue price: 104.49151% of the Nominal Amount per Tap Issue Note
Margin: 4.75% per annum
Reference Rate: 3-month ZAR - JIBAR determined on the last Calendar
Day of a Calendar Month for the reference rate applicable
to the following Calendar Month as benchmark using a
simple rate of return (not compounding)
Explanatory note on the Reference Rate
Rate Determination Method: The Reference Rate is
determined using the Screen Rate Determination method
(Reference Rate plus Margin).
Reference Rate: 3-month ZAR - JIBAR , which is
determined on the last Calendar Day of each Calendar
Month as the benchmark rate for the following Calendar
Month.
This rate is calculated using a simple rate of return (not
compounding).
Margin: A margin of 4.75% is added to the Reference
Rate.
While the Reference Rate Reset Date is not specifically
stated, it can be interpreted from the wording of the
Reference Rate that the reset occurs on a monthly basis.
Accordingly:
"3-month ZAR - JIBAR" is determined on the last Calendar
Day of a Calendar Month for the Reference Rate
applicable to the following Calendar Month as benchmark
using a simple rate of return (not compounding).
Rationale for the monthly reset:
The Tap Issue Note is designed as a floating rate asset-
backed note, primarily due to the short term nature of the
Underlying Transactions with counterparties in the
agriculture sector, with terms typically ranging between 3
to 12 months.
Given this characteristic, a floating rate structure aligns
perfectly with the dynamic nature of these agricultural
transactions and it ensures that the Tap Issue Note
remains in sync with the prevailing market conditions and
Reference Rate movements over the relatively short
transaction terms.
As a result, it provides a fair and competitive mechanism
for both Tap Issue Note investors and the Issuer,
facilitating a more effective and efficient financing
solution for all parties involved in these agriculture-
related transactions, while remaining Shariáh compliant.
Maturity date: 28 October 2025, unless redeemed on any Optional
Dissolution Date and/or Early Dissolution Date. If any
such date is not a Business Day, the date determined in
terms of the Following Business Day Convention
Books close period(s): The Register will be closed from 26 March to 30 March
and from 25 September to 29 September (all dates
inclusive) in each year and 23 October 2025 to
27 October 2025 (all dates inclusive) until the Maturity
Date
Periodic distribution dates: 31 March and 30 September of each year until the
Maturity Date
Last day to register: By 17h00 on 25 March and 24 September each year until
the Maturity Date or, if any day is not a Business Day, the
last Business Day immediately preceding the
commencement of the Books Closed Period(s)
Issue date: 2 February 2024
Applicable Business Day Convention: Following Business Day Convention
Periodic distribution commencement 30 September 2023, being the last day of the previous
date: Periodic Distribution Period for the AGRIA1 Sukuk Notes
in issue
ISIN: ZAG000191214
Status of notes: Senior Secured
The applicable pricing supplement for the tap issue is available at:
https://www.27four.com/agrarius/investorcentre
Rosebank
1 February 2024
JSE Debt Officer
Johan Fourie
27four Investment Managers
JSE Debt Sponsor and Transaction Debt Sponsor Legal Advisor
Questco Corporate Advisory Proprietary Fasken Martineau DuMoulin LLP
Limited (incorporated in South Africa as Bell
Dewar Inc.)
Administrator Lead Dealer
27four Investment Managers RMB, a division of Firstrand Bank Limited
Date: 01-02-2024 11:18:00
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