THE STANDARD BANK OF SOUTH AFRICA LIMITED - Credit Event Announcement - "CLN406"

Credit Event Announcement - "CLN406"

THE STANDARD BANK OF SOUTH AFRICA LIMITED (REGISTRATION NUMBER
1962/000738/06) – Credit Event Announcement in respect of CLN406


NOTICE IS GIVEN TO ALL HOLDERS OF CLN406 ZAR22,141,863.29
iTRAXX® EUROPE CROSSOVER SERIES 23 LISTED NOTE DUE 20 JUNE 2020
(Stock Code: CLN406 and ISIN Code: ZAG000127135) (the “Note”)
issued in terms of The Standard Bank of South Africa Limited’s
Structured Note Programme (the “Programme”) on 11 June 2015.
Capitalised terms used and not otherwise defined in this
announcement have the meaning given to them in the Pricing
Supplement of the Note, as read with the Programme Memorandum.
Notice is hereby given that a Credit Event Determination Date
has occurred under the terms of the Note in respect of the
Portion relating to Galapagos Holding S.A. (“Galapagos”):
following the Credit Event Resolution Request Date of 17 July
2019 ISDA, as DC Secretary, in a DC Credit Event Announcement
dated 19 July 2019, publicly announced that the relevant Credit
Derivatives Determinations Committee had Resolved that a Failure
to Pay Credit Event had occurred in respect of Galapagos, which
is one of the Reference Entities included in the Index, as
listed in the Relevant Annex.
As a result of the occurrence of the Credit Event Determination
Date, the following will occur in accordance with the provisions
of the Pricing Supplement:
  A. interest will cease to accrue in respect of the Portion
     relating to Galapagos (such Portion the “Affected Portion”)
     with effect from 20 June 2019, being the Interest Payment
     Date occurring immediately prior to the Credit Event
     Determination Date, until the day which is 5 Business Days
     following the determination of the Final Price or the
     publication of the Auction Final Price, as the case may be,
     such day the “Calculation Date”;
  B. the Calculation Agent will determine the Cash Settlement
     Amount in respect of the Affected Portion;
  C. with effect from the Calculation Date:
    (i)     the Credit Linked Conditions will no longer apply in
            respect of the Affected Portion;
    (ii)    the Nominal Amount of the Affected Portion will be
            amended to be equal to the Cash Settlement Amount
            determined in respect of such Affected Portion (which
            amount may be positive or negative);
    (iii)   the Margin applicable to the Affected Portion will
            be amended to be equal to the offer rate (in the
            case of a positive Cash Settlement Amount) or the
            bid rate (in the case of a negative Cash Settlement
            Amount) quoted by the Issuer at 11:00 a.m.
            (Johannesburg time) on the Calculation Date on the
            Reuters Screen SBID (or any successor page) for
            negotiable certificates of deposit with a term
            closest to the term remaining from such date to the
            Scheduled Maturity Date, or if such rate is not
            available   at  such   time,   determined  by   the
            Calculation Agent in a commercially reasonable
            manner; and
  (D) the Issuer will, as soon as reasonably practicable
      following the determination of the Cash Settlement Amount
      and the applicable Margin, notify the Noteholders of all of
      the amendments made to such Affected Portion of the Note as
      set out in (A) to (C) above.
Notice is given to Noteholders for information purposes only.
No action is required by Noteholders.
Dated 08 August 2019
Sponsor – The Standard Bank of South Africa Limited
Further information on the Note issued please contact:
Johann Erasmus           SBSA (Sponsor)
Email: johann.erasmus@standardbank.co.za

Date: 08/08/2019 09:00:00
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