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Blue Granite 2 Amendment Announcement
Blue Granite Investment No 2 (Proprietary) Limited – Amendment
Announcement
Date: 16 November 2012
Blue Granite Investment No 2 (Proprietary) Limited
Stock Code: BG22A1, BG22A2, BG22A3, BG22B1, BG22C1, BG22D1,
BG22YU
ISIN Code: ZAG000087537, ZAG000087545, ZAG000087560,
ZAG000087552, ZAG000087578, ZAG000087586, ZAG000087628
Authorised Programme size R5,000,000,000
Total notes issued R2,276,000,000
Sponsor: Standard Bank
TEMPORARY WAIVER OF CERTAIN CONTRACTUAL REQUIREMENTS BY BLUE
GRANITE INVESTMENTS No.2 (PROPRIETARY) LIMITED (“BLUE GRANITE”)
FOLLOWING THE RECENT DOWNGRADE OF THE STANDARD BANK OF SOUTH
AFRICA LIMITED BY MOODY’S INVESTOR SERVICES
The R5,000,000,000 Asset Backed Note Programme established by
Blue Granite (“the Programme”), refers.
On 4 October 2012 Moody’s Investor Services reduced the short-
term local currency global scale rating of The Standard Bank of
South Africa Limited (“Standard Bank”) from Prime-1 to Prime-2
(“the Downgrade”).
As a consequence, Standard Bank no longer has:
1) the Required Credit Rating to act as counter party, as set
out in the Transaction Documents, in respect of a number of
functions (including but not limited to its functions as
the Account Bank, the GIC Provider, the entity with which
Permitted Investments may be held, the Servicer (in
relation to the requirement to sweep Collections daily from
the Collections Account into the Issuer's Transaction
Account) and the Derivative Counterparty) (collectively
referred to as “the Functions”); or
2) the First Trigger Required Ratings, as defined in the
Schedule to the ISDA Master Agreement, published by the
International Swaps and Derivatives Association (“ISDA”),
dated as of 28 July 2011 (“the Schedule”).
Investors are hereby informed that:
1) Blue Granite, with the consent of Blue Granite No. 2
Security SPV (Proprietary) Limited (“the Security SPV”),
has engaged the Rating Agency with a view to obtaining its
confirmation that the Downgrade, and amendments to the
definition of “First Trigger Required Ratings” in the
Schedule, will not adversely affect its ratings of the
notes in issue under the Programme (“the Rating
Affirmation”);
2) pending the Rating Affirmation, Blue Granite and the
Security SPV have agreed to temporarily waive all
requirements provided for in the Transaction Documents,
including but not limited to the Schedule, that have arisen
or may arise as a result of the Downgrade, until 31 January
2013 or the further downgrading of Standard Bank by Moody’s
Investor Services, whichever occurs earlier; and
3) upon receipt of the Rating Affirmation:
a. Standard Bank will again have the Required Credit
Rating in respect of Standard Bank’s performance of
each of the Functions, in that it will have “such
other rating ... which the Rating Agency confirms in
writing will not adversely affect its respective
current Ratings of the Notes in issue” (as provided
for in the definition of “Required Credit Rating”);
and
b. the definition of “First Trigger Required Ratings” in
the Schedule will be amended by the parties thereto to
provide for the amended rating levels agreed to by the
Ratings Agency as a result of the Downgrade.
Further information on the Note issued please contact:
Mike Brunke SBSA (Sponsor) (011) 378 8101
Email: mike.brunke@standardbank.co.za
Date: 16/11/2012 08:01:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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