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Sanlam Limited - Announces successful placing of its subordinated bonds

Release Date: 10/08/2006 17:42
Code(s): SLM
Wrap Text

Sanlam Limited - Announces successful placing of its subordinated bonds SANLAM LIMITED (REGISTRATION NUMBER 1959/001562/06) JSE share code: SLM NSX share code: SLA ISIN number: ZAE000070660 Sanlam announces successful placing of its subordinated bonds Sanlam Life Insurance Limited, a wholly owned subsidiary of listed financial services firm Sanlam Limited, announced today the successful placement of R1.99 billion of subordinated bonds at spreads acceptable to Sanlam and the investor market. The bonds were placed with a broad range of investors and are split between a 7 and 10-year maturity period. The 7-year bond (R1.16 billion) was priced at 100 basis points over the comparable 7-year government benchmark (R201), and the 10-year bond (R0.83 billion) was priced at 110 basis points over the comparable 10-year government benchmark (R157). Sanlam Financial Director Flip Rademeyer commented: "The bond issue reflects another step in Sanlam"s commitment to optimising the Group"s capital structure and will change the composition of assets backing Sanlam Life"s capital requirements, thereby reducing the volatility in its statutory capital base. I am very pleased that the Life business" financial strength and solid credit rating has resulted in strong interest from a broad range of investors from the local investment community". Fitch Ratings (Fitch), the international rating agency, has assigned Sanlam a National Insurer Financial Strength Rating of AA (zaf) and a National Long-term Rating of AA- (zaf) with a positive rating outlook. These ratings reflect the Group"s strong capital position and improving operating performance as well as it"s strong brand and business position, and good diversification. The bonds were issued under an auction book build with Citigroup and Sanlam Capital Markets acting as joint lead managers. The bonds will be listed on the Bond Exchange of South Africa. 10 August 2005 Sponsor JPMorgan Equities Limited Date: 10/08/2006 05:42:22 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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