TRANSACTION CAPITAL LIMITED - Transaction Capital raises R665m in inaugural note issue for Transsec (RF) Ltd

Transaction Capital raises R665m in inaugural note issue for Transsec (RF) Ltd

Transaction Capital Limited
(Incorporated in the Republic of South Africa)
Registration number: 2002/031730/06
JSE share code: TCP
ISIN: ZAE000167391
(“Transaction Capital”)

TRANSACTION CAPITAL RAISES R665M IN INAUGURAL NOTE ISSUE FOR TRANSSEC (RF) LT D

Transaction Capital is pleased to announce the successful inaugural note issue under the newly established
asset-backed note programme (the “Programme”) of Transsec (RF) Ltd (“Transsec”). Transsec is a special
purpose securitisation entity established as a standalone issuer approved by the South African Reserve Bank to
facilitate the ongoing issuance of rated and listed debt securities for the SA Taxi Group (“SA Taxi”) (part of the
Asset Backed Lending division of Transaction Capital) thereby augmenting its funding platform and offering to
the market.

SA Taxi has once again enjoyed strong support from the capital markets and the favourable terms of this
transaction constitutes, in part, an acknowledgement by our institutional debt investors of the significant
strides made by SA Taxi in enhancing its unique and developmental business model.

R665m of listed notes were issued under Transsec’s R4 billion Programme on the interest rate platform of the
JSE. The notes were issued to fund a portfolio of instalment sale agreements advanced to minibus taxi
operators and were rated by international rating agency, Standard and Poor’s Rating Services. The Programme
was jointly arranged by the debt capital markets team of Transaction Capital and The Standard Bank of South
Africa Limited.

Six tranches of notes were offered to the market ranging from zaAAA (sf) rated senior notes to unrated junior
notes. Key highlights of this transaction include:
1)      a total of R1.006bn worth of bids was received during the auction process;
2)      the weighted average cost of funding in Transsec is 226 basis points over 3 month JIBAR;
3)      a total of 11 institutional investors participated across all tranches of notes offered; and
4)      of the 11 investors who participated, six investors are new funders to SA Taxi.

The successful launch of the Programme represents continued progress towards Transaction Capital’s stated
funding philosophy of diversification of funders and funding products as well as the improvement of its cost of
funding.

Sandton
04 June 2014

Enquiries:
Phillipe Welthagen - Investor Relations
Telephone: +27 (0) 11 555 5004

Programme Sponsor: The Standard Bank of South Africa Ltd

Sponsor Deutsche Securities (SA) Proprietary Limited

Date: 04/06/2014 04:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.