THE STANDARD BANK OF SOUTH AFRICA LIMITED - Credit Event Announcement in respect of CLN577

Credit Event Announcement in respect of CLN577

THE STANDARD BANK OF SOUTH AFRICA LIMITED (REGISTRATION NUMBER
1962/000738/06) – Credit Event Announcement in respect of CLN577


NOTICE IS GIVEN TO ALL HOLDERS OF CLN577 ZAR50,000,000 iTRAXX®
EUROPE CROSSOVER SERIES 31 LISTED NOTE DUE 20 June 2024 (Stock
Code: CLN577 and ISIN Code: ZAG000158437) (the “Note”) issued in
terms of The Standard Bank of South Africa Limited’s Structured
Note Programme (the “Programme”)) on 5 April 2019. 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: the Conditions to
Settlement have been satisfied in respect of the Portion
relating to Thomas Cook Group PLC (“Thomas Cook”) due to the
fact that following the Credit Event Resolution Request Date of
23 September 2019, ISDA has on 18 October 2019 publicly
announced that the relevant Credit Derivatives Determinations
Committee has Resolved that a Failure to Pay Credit Event had
occurred in respect of Thomas Cook, 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 Thomas Cook (such Portion the “Affected
     Portion”) with effect from 20 June 2019, 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 such portion will be amended
            to be equal to the Issuer’s ZAR term funding rate on
            the Calculation Date as 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 23 October 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: 23/10/2019 10:25:00
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