NQABA FINANCE 1 (RF) LIMITED - Nqaba Finance 1 (RF) Ltd-Arrears Reserve Trigger Event

Nqaba Finance 1 (RF) Ltd-Arrears Reserve Trigger Event

NQABA FINANCE 1 (RF) LIMITED
(Incorporated with limited liability in South Africa under registration number 2005/040050/07))


R5 000 000 000 Asset Backed Note Programme of Nqaba Finance 1 (RF)
Limited (the "Issuer"): Arrears Reserve Trigger Event


1.    Words and expressions used in this announcement will, unless otherwise defined or the
      context otherwise requires, bear the same meanings as in the Programme Memorandum
      dated on or about 20 May 2013, as amended, novated or substituted from time to time.

2.    The Issuer delivers this notice to the Central Securities Depository's Nominee and the JSE in
      accordance with Condition 17.2 of the Terms and Conditions.

3.    According to Condition 1.28 of the Terms and Conditions, an Arrears Trigger Event shall
      occur on any Determination Date where the aggregate Principal Balances of Home Loans (i)
      which are in Arrears for more than 3 months; and/or (ii) in respect of which the Issuer has
      instituted legal proceedings for the recovery of amounts owing, exceeds 1.5% of the
      aggregate Principal Balances of the Home Loans and shall cease when such percentage
      reduces to 1.00%.

4.    The Issuer hereby notifies each holder of the Notes, for information purposes only, that:

4.1        as at 30 September 2014, the percentage of aggregate Principal Balances of Home
           Loans (i) which are in Arrears for more than 3 months; and/or (ii) in respect of which the
           Issuer has instituted legal proceedings for the recovery of amounts owing, was 1.67% of
           the aggregate Principal Balances of the Home Loans. Annexed hereto as "A" are the
           percentage levels of the Arrears between the period October 2013 and
           September 2014;

4.2        the recent increase in the percentage of Arrears is attributed to (i) the Issuer's inability to
           increase the size of the current Home Loan portfolio (ii) on-going delays in litigation
           processes for the recovery of Arrears and/or (iii) an increase in the number of Eskom
           Holdings Limited employees who have either retired or resigned from their employment
           during the months of April and May 2014 and have failed to pay their Instalments when
           due;

4.3        on the next Payment Date being 22 October 2014, the Issuer will pay the Arrears
           Reserve Required Amount, being R6,644,335.00 into the Arrears Reserve, in
           accordance with the Programme; and

4.4        as the date of this notice, the Issuer has sufficient cash reserves to fund the Arrears
           Reserve in the immediate future.




23 October 2014
Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking division)

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