African Bank issues R1bn bond

Published: September 28, 2010

South African institution says new debt will trade from tomorrow.

South Africa’s African Bank is issuing R1bn (US$142mn)-worth of four-year senior unsecured bonds, due to start trading on the Johannesburg Stock Exchange tomorrow (Wednesday).

The issuance will comprise a R525mn, 9.5% fixed-rate bond and a R475mn floating-rate bond.

The bonds were 63% oversubscribed. Rand Merchant Bank acted as lead arranger and sponsor, while Prinsloo, Tindle & Andropoulos acted as legal adviser to African Bank.