STANDARD BANK OF SA LTD - Credit Event Announcement

Credit Event Announcement

The Standard    Bank   of   South   Africa   Limited  

Credit   Event  Announcement

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 ZAR28,365,207 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:
(i)    the Issuer has received notice from the Calculation Agent
       that a Restructuring Credit Event has occurred in respect
       of Norske Skogindustrier ASA (“Norske”), which is one of
       the Reference Entities included in the Index, as listed in
       the Relevant Annex. The Restructuring Credit Event relates
       to Norske in terms of an exchange offer inter alia
       exchanging its outstanding EUR218,106,000 7.00% senior
       notes due 26 February 2017 (ISIN: XS1193909154) for notes
       maturing on 30 December 2026 (ISIN: XS1394812595) and 30
       December 2115 (ISIN: XS1394812918). ISDA on 22 April 2016
       announced    that   the    relevant   Credit    Derivatives
       Determinations Committee resolved that a restructuring
       credit event occurred in respect of Norske; and
(ii)   a Credit Event Determination Date has occurred in respect
       of Norske under the terms of the Note.
A copy of the Credit Event Notice and Notice of Publicly
Available Information confirming the occurrence of the events
described above will be made available to Noteholders on
request.
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 Norske (such Portion the “Affected Portion”)
     with effect from 20 March 2016, 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 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 20 June 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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