NQABA FINANCE 1 (RF) LIMITED - Notification of Early Amortization Arrears Trigger - NQA early amortization arrears trigger

Notification of Early Amortization Arrears Trigger - NQA

early amortization arrears trigger

NQABA FINANCE 1 (RF) LIMITED
Registration Number 2005/040050/07
(JSE Alpha code: NQA)
(Nqaba or the Issuer)

Notification of early amortisation arrears trigger

Unless otherwise defined, words and expressions used in this announcement will bear the same meaning
ascribed to it in the Nqaba Asset Backed Note Programme Memorandum dated 6 July 2020 (the
Programme Memorandum).

Nqaba wishes to advise Noteholders that an Early Amortisation Event as defined in paragraph 1.77.5 of
the Glossary of Definitions and Condition 1 of the Programme Memorandum, occurred on 31 July 2020,
when the aggregate Principal Balances of Home Loans owned by the Issuer which are in Arrears for more
than three months, exceeded the 2.5% threshold of the aggregate Principal Balances of the Home Loans.
The occurrence of an Early Amortisation Event results in the Revolving Period coming to an end and the
Amortisation Period commencing (see definitions at Conditions 1.14 and 1.245 of the Programme
Memorandum). Payments are now required to be made in terms of the "Pre-Enforcement Priority of
Payments during the Amortisation Period". Furthermore, all moneys in the Arrears Reserve will be applied
in accordance with the Pre-Enforcement Priority of Payments applicable during the Amortisation Period
(see Condition 5.5 of the Programme).

The following adjusted applicable margins are indicated in the table below and will now apply during the
Amortisation Period as specified in the relevant Applicable Pricing Supplements.

  Note         ISIN               Interest Rate during Amortisation Period
  NQ1A10       ZAG000077686       3m Jibar + 200bps
  NQ1B10       ZAG000077702       3m Jibar + 220bps
  NQ1C10       ZAG000077694       3m Jibar + 240bps

The applicable margins on the remaining Notes in issue will remain the same during the Amortisation
Period until the Notes reach their Final Maturity Date.

  Note         ISIN               Interest Rate during Amortisation Period
  NQ1A24       ZAG000143991       3m Jibar + 224bps
  NQ1B17       ZAG000126467       3m Jibar + 254.8bps
  NQ1C17       ZAG000126459       3m Jibar + 315bps
  NQ1D5        ZAG000077678       3m Jibar + 115bps
  NQ1A25       ZAG000144007       3m Jibar + 184bps
  NQ1A27       ZAG000151531       3m Jibar + 185bps
  NQ1A28       ZAG000159583       3m Jibar + 150bps
  NQ1B20       ZAG000151549       3m Jibar + 225bps
  NQ1B21       ZAG000159591       3m Jibar + 200bps

On each Interest Payment Date during the Amortisation Period, the Issuer shall partially redeem each
Note in all Tranches of Notes (regardless of the Scheduled Maturity Dates of such Tranches of Notes), in
reducing order of rank (and pari passu if of equal rank) as determined by the respective Classes of such
Notes, to the extent permitted by and in accordance with the Priority of Payments applicable during the
Amortisation Period, until the Outstanding Principal Amount of such Notes is reduced to zero (Condition
7.5).

The amounts redeemable will be communicated with the relevant interest payments in the
announcements to be released at each Payment Period.

19 August 2020

Debt Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited

Date: 19-08-2020 04:45:00
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