|
FSR
FSR
Firstrand Limited/Momentum - Momentum announces subordinated bond issue
Firstrand Limited
(Incorporated in the Republic of South Africa)
(Registration number 1966/010753/06)
(Share code: FSR)
(ISIN: ZAE000066304)
Momentum Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1904/002186/06)
("Momentum")
Momentum announces subordinated bond issue
EB Nieuwoudt
Managing Director
Momentum Group Limited (Momentum), a wholly owned subsidiary of FirstRand
Limited, today announced that it is issuing a subordinated unsecured bond. The
bond issue of R1 billion was three times oversubscribed and will be issued at 70
basis points above the benchmark risk free interest rate.
The proceeds of the bond issue will qualify as regulatory capital. The bond
issue forms part of Momentum"s capital management strategy to diversify capital
sources and reduce the cost of capital.
The bond is due on 15 March 2020 and will be callable by Momentum from 15
September 2015. The coupon rate will be fixed at 8.5% payable semi-annually up
to 15 March 2015. Thereafter the coupon will become floating at three month
JIBAR plus 180% of the credit spread at issue, payable quarterly.
"We are very pleased with the overwhelming response from the investor market and
the competitive interest rate that we achieved. This confirms the high regard
in which Momentum is held," said EB Nieuwoudt, Managing Director of the Momentum
Group.
He goes on to say: "The bond issue will create a more effective capital
structure for Momentum. This is part of Momentum"s and Firstrand"s focus on
effective capital management".
Fitch Ratings (Fitch), the international rating agency, has assigned Momentum a
National Insurer Financial Strength Rating of AA+(zaf), a National Long-term
Rating of AA(zaf) and an AA-(zaf) expected rating for this subordinated bond
issue.
ends
ENDS
Notes:
RMB, a division of FirstRand Bank Limited, has been mandated as the lead
managers for the issue and also acted as advisor to Momentum. Deneys Reitz
served as the legal advisors.
Issued on behalf of: Momentum
Contact: EB Nieuwoudt,
Managing Director Momentum Group
Telephone: 012 - 671 8463
Contact: Asokan Naidu
CFO Momentum Group
Telephone: 012 - 673 7365
Mobile: 082 885 5152
Contact: Gerhard Kruger
Head Capital Management Momentum
Group
Telephone: 012 673 7211
Mobile: 082 801 3576
Client Contact: Sonja Malan
Head Public Relations
Telephone: 012 6713 7543 Mobile: 083 635 6965
E-mail: Sonja.malan@momentum.co.za
Issued By: Cordev Marketing
Consultancy Contact: Mandy Laemmle
Telephone: 011 783 2070 Mobile: 082 8222 494
Email: cordev@creativelife.co.za
Date: 20/04/2006 02:56:09 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
