Absa Group Limited - Absa Group Limited: Absa Issu
Absa Group Limited - Absa Group Limited: Absa Issues First R1.5 Billion Bond
Under New Credit Rating
ABSA GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06)
(`Absa`)
JSE CODE: ASA
Issuer code: AMAGB
ISIN CODE: ZAE000067237
Absa issues first R1.5 billion bond under new credit rating
Absa has successfully issued a R1.5 billion subordinated callable bond today
under its increased R15 billion listed Domestic Medium Term Note Programme.
This is Absa`s first capital market issue since the completion of the
Barclays acquisition of a majority stake in the Group. The acquisition saw
Absa`s national scale credit rating upgraded from AA to AAA and also
resulted in the compression of the bank`s credit spread on subordinated debt
from 140 basis points in March 2004 to 63 basis points in September 2005.
Details of the bond issue
Stock Code AB05
Settlement Date: 1 September 2005
Principal Amount: ZAR1.5 billion
Maturity Date: 1 September 2017
Coupon: 8.75%
Coupon Dates: 1 March and 1 September
Books close Date: 19 February, 22 August
Issue Price: 99.94849
Listing: Bond Exchange of South Africa
Issue Spread: 63 bps over R201
Call date: 1 September 2012
Step-up if not call: The fixed rate will convert to
a quarterly floating rate and
the coupon will step up to 113
basis points (initial credit
spread on issue date plus 50
basis points) above three
month Jibar. Quarterly
interest payment dates shall
be 1 March, 1 June, 1
September and 1 December.
Absa Corporate and Merchant Bank, a division of Absa Bank Limited, placed
the bond.
For more information, please contact:
Liezl Squier
Account Executive: PR & Communication
Absa Group Marketing & Communication
Cell: 082 375 3554
Ends
Date: 01/09/2005 05:04:13 PM
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