By Susanna Moon
Chicago, March 25 - African Bank Ltd. said it issued ZAR 2 billion of senior notes in the domestic market from a tap of an existing bond issue and through a new issue of bonds.
The bank tapped ZAR 1.2 billion from the existing ZAR 800 million inflation-linked notes due February 2018 issued at the South African consumer inflation rate plus 320 basis points on Feb. 19.
The additional ZAR 1.2 billion of notes was issued at a premium to the original issue, which translates into a lower effective yield of CPI plus 299 bps, according to a press release. The tap increases the original bond size to ZAR 2 billion.
African Bank also issued ZAR 800 million of three-year floating-rate notes with a coupon of three-month Jibar plus 199 bps, which was also tighter than the last similar bond issued in October 2012, the release noted.
Both of the issues were oversubscribed by 1.3 times, according to Gavin Jones, executive of funding and liability management.
"The pricing received was also tighter than our similar bonds issued last year and well within price guidance," Jones noted in the release.
Proceeds will be used for general funding purposes.
Rand Merchant Bank is the debt sponsor.
African Bank is a Johannesburg-based lender.
| Issuer: | African Bank Ltd.
|
| Issue: | Series ABLI05 and series notes
|
| Amount: | ZAR 2 billion
|
| Sponsor: | Rand Merchant Bank
|
| Settlement date: | March 25
|
|
|
| Series ABLI05
|
| Amount: | ZAR 1.2 billion
|
| Total issue: | ZAR 2 billion, including ZAR 800 million original issue amount
|
| Maturity: | February 2018
|
| Coupon: | CPI plus 320 bps
|
| Yield for tap: | CPI plus 299 bps
|
| Original issue date: | Feb. 19
|
|
|
| Notes due 2016
|
| Amount: | ZAR 800 million
|
| Maturity: | March 2016
|
| Coupon: | Three-month Jibar plus 199 bps
|
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