STANDARD BANK OF SA LTD - Credit Event Announcement

Credit Event Announcement

THE STANDARD BANK OF SOUTH AFRICA LIMITED (REGISTRATION NUMBER
1962/000738/06) – Credit Event Announcement in respect of CLN393


NOTICE IS GIVEN TO ALL HOLDERS OF CLN393 ZAR47,025,912 iTRAXX®
EUROPE CROSSOVER SERIES 22 LISTED NOTE DUE 20 DECEMBER 2019
(Stock Code: CLN393 and ISIN Code: ZAG000120841) (the “Note”)
issued in terms of The Standard Bank of South Africa Limited’s
Structured Note Programme (the “Programme”)) on 24 October 2014.
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 an Event Determination Date has
occurred under the terms of the Note: the Conditions to
Settlement have been satisfied in respect of the Portion
relating to Portugal Telecom International Finance BV (“Portel”)
due to the fact that following the Credit Event Resolution
Request Date of 21 June 2016, ISDA has on 01 July 2016 publicly
announced that the relevant Credit Derivatives Determinations
Committee has Resolved that a Bankruptcy Credit Event had
occurred in respect of Portel, 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 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 Portel (such Portion the “Affected Portion”)
     with effect from 20 June 2016, being the Interest Payment
     Date occurring immediately prior to the 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 13 July 2016
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

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