| Thu 19 May 2005, 16:01 | | SUBORDINATED UNSECURED CALLABLE BOND ISSUE |
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Liberty Group Limited - Subordinated Unsecured Callable Bond Issue
Liberty Group Limited
(Registration number 1957/002788/06)
(Incorporated in the Republic of South Africa)
Registration number 1957/002788/06
Share Code: LGL
ISIN Code: ZAE000057360
SUBORDINATED UNSECURED CALLABLE BOND ISSUE
Liberty Group Limited (`Liberty Life`) is pleased to announce that all
requirements have been met (including the approval of the Financial Services
Board) to enable it to issue subordinated, unsecured, callable, secondary
capital bonds.
J.P. Morgan Securities South Africa (Proprietary) Limited and Standard Bank
Limited have been mandated as Joint Lead Managers and Bookrunners, and Andisa
Capital (Proprietary) Limited as Co-Manager for Liberty Life`s inaugural
regulatory capital bond issue. Application has been made to list the bond on the
Bond Exchange of South Africa.
Further details of the issue and its timing will be announced in due course.
The bond will enhance Liberty Life`s existing capital base, to support ongoing
working capital requirements, at a lower cost compared with equity capital.
Myles Ruck, Liberty Life`s CEO comments: `This is indeed a milestone for the SA
life assurance industry, as Liberty Life will be the first SA life assurance
company to raise this type of debt funding qualifying as capital for regulatory
purposes (a feature of the banking industry for many years). The local regulator
should be applauded for its efforts to recognise international trends in capital
management. The funds raised will be used as working capital to grow our
business. We believe this allows the group to lower its weighted average cost of
capital and thereby improve returns of the business. We are furthermore pleased
with the positive rating which Fitch has assigned to the group.`
Fitch Ratings, the international rating agency, has today assigned Liberty Life
a National Insurer Financial Strength Rating of `AA(zaf)` and a National Long-
term issuer rating of `AA-(zaf)`. The rating Outlook is Stable.
For further information, please contact:
Myles Ruck (CEO) 011-408 2001
Deon De Klerk (CFO) 011-408 2572
Stewart Rider (Group Finance & Investor Relations) 011-408 3260
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`
Joint Lead Manager and Sponsoring Member
The Standard Bank of South Africa Limited
(Registration number 1962/00738/06)
Joint Lead Manager
J.P. Morgan Securities South Africa (Proprietary) Limited
(Registration number 1996/015112/07)
Co-Manager
Andisa Capital (Proprietary) Limited
(Registration number 2003/001707/07)
Calculation Agent
The Standard Bank of South Africa Limited
(Registration number 1962/00738/06)
Attorneys to the Joint Lead Managers
Webber Wentzel Bowens
Attorneys to the Issuer
Werksmans Inc
Settlement Agent
The Standard Bank of South Africa Limited
(Registration number 1962/00738/06)
JSE Sponsor to the Issuer
Merrill Lynch South Africa (Pty) Limited
Johannesburg
19 May 2005
Date: 19/05/2005 04:00:03 PM
Produced by the JSE SENS Department
