Firstrand Limited/Momentum - Momentum announces subordinated bond issue

Firstrand Limited/Momentum - Momentum announces subordinated bond issue         
Firstrand Limited                                                               
(Incorporated in the Republic of South Africa)                                  
(Registration number 1966/010753/06)                                            
(Share code: FSR)                                                               
(ISIN: ZAE000066304)                                                            
Momentum Group Limited                                                          
(Incorporated in the Republic of South Africa)                                  
(Registration number 1904/002186/06)                                            
("Momentum")                                                                    
Momentum announces subordinated bond issue                                      
EB Nieuwoudt                                                                    
Managing Director                                                               
Momentum Group Limited (Momentum), a wholly owned subsidiary of FirstRand       
Limited, today announced that it is issuing a subordinated unsecured bond.  The 
bond issue of R1 billion was three times oversubscribed and will be issued at 70
basis points above the benchmark risk free interest rate.                       
The proceeds of the bond issue will qualify as regulatory capital. The bond     
issue forms part of Momentum"s capital management strategy to diversify capital 
sources and reduce the cost of capital.                                         
The bond is due on 15 March 2020 and will be callable by Momentum from 15       
September 2015. The coupon rate will be fixed at 8.5% payable semi-annually up  
to 15 March 2015.  Thereafter the coupon will become floating at three month    
JIBAR plus 180% of the credit spread at issue, payable quarterly.               
"We are very pleased with the overwhelming response from the investor market and
the competitive interest rate that we achieved.  This confirms the high regard  
in which Momentum is held," said EB Nieuwoudt, Managing Director of the Momentum
Group.                                                                          
He goes on to say: "The bond issue will create a more effective capital         
structure for Momentum.  This is part of Momentum"s and Firstrand"s focus on    
effective capital management".                                                  
Fitch Ratings (Fitch), the international rating agency, has assigned Momentum a 
National Insurer Financial Strength Rating of AA+(zaf), a National Long-term    
Rating of AA(zaf) and an AA-(zaf) expected rating for this subordinated bond    
issue.                                                                          
ends                                                                            
ENDS                                                                            
Notes:                                                                          
RMB, a division of FirstRand Bank Limited, has been mandated as the lead        
managers for the issue and also acted as advisor to Momentum.  Deneys Reitz     
served as the legal advisors.                                                   
Issued on behalf of:          Momentum                                          
Contact:                      EB Nieuwoudt,                                     
Managing Director Momentum Group                  

Telephone:                    012 - 671 8463                                    
Contact:                      Asokan Naidu                                      
                              CFO Momentum Group                                
Telephone:                    012 - 673 7365                                    
Mobile:                       082 885 5152                                      
Contact:                      Gerhard Kruger                                    
                              Head Capital Management Momentum                  
Group                                                                           
Telephone:                    012 673 7211                                      
Mobile:                       082 801 3576                                      
Client Contact:               Sonja Malan                                       
Head Public Relations                             

Telephone:                    012 6713 7543  Mobile: 083 635 6965               
E-mail:                       Sonja.malan@momentum.co.za                        
Issued By:                    Cordev Marketing                                  
Consultancy Contact:          Mandy Laemmle                                     
Telephone:                    011 783 2070   Mobile: 082 8222 494               
Email:                        cordev@creativelife.co.za                         
Date: 20/04/2006 02:56:09 PM Supplied by www.sharenet.co.za                     
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