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AFRICAN BANK INVESTMENTS LIMITED - African Bank raises R2 billion from Domestic Bond Issue

Release Date: 25/03/2013 07:05
Wrap Text
African Bank raises R2 billion from Domestic Bond Issue

AFRICAN BANK INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
(Registration number 1946/021193/06)
Ordinary share code: ABL ISIN: ZAE000030060
Preference share code: ABLP ISIN: ZAE000065215
(“ABIL”)
and
AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank)
(Registration number 1975/002526/06)
Company code: BIABL
(“African Bank”)

AFRICAN BANK RAISES R2 BILLION FROM DOMESTIC BOND ISSUE

African Bank (a wholly-owned subsidiary of ABIL) has successfully raised R2 billion in senior unsecured
funding in the domestic market from a tap of an existing bond in issue, and through a new issue of bonds
under its Domestic Medium Term Note (‘DMTN’) programme. The funds are designated to be used for
general funding purposes.

An amount R1.2 billion was tapped from the existing R800 million inflation linked note ABLI05 (ISIN
ZAG000102872) which was issued with a coupon of the South African consumer inflation rate (‘CPI’) plus
3.2% on 19th February 2013. The additional R1.2 billion was issued at a premium to the original issue which
translates into a lower effective yield of CPI plus 2.99%. The tap increases the original bond size to R2
billion and is set to mature in February 2018.

A new three year floating rate note ABL16 (ISIN ZAG000104183) to the value of R800 million was also
issued. Set to mature in March 2016, the bond bears a coupon of 3 month JIBAR plus a margin of 199 bps
per annum, which was also tighter than the last similar bond issued in October 2012.

Gavin Jones, Executive: Funding and Liability Management, commented: “We appreciate that South African
debt funders have once again demonstrated their confidence and support for African Bank’s credit as both
of these issues were oversubscribed by 1.3 times. The pricing received was also tighter than our similar
bonds issued last year and well within price guidance.”

For further information please contact Gavin Jones on +27 11 564 6868 or Gary Rowe on +27 11 256 9147.

Midrand
25 March 2013

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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