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Project Brief – Nedbank Group Project


The total project involves the issuance of up to ZAR 2 billion 15-year subordinated Tier II qualifying bonds by Nedbank that will be listed on the Bond Exchange of South Africa (“BESA”) under Nedbank’s Domestic Medium Term Note (“DMTN”) program This transaction is part of an overall ZAR 8.5 billion capital raising program for 2007, which includes ZAR 5.5 billion of Tier II capital. Of this NBG raised ZAR 2.35 billion of shorter-dated subordinated debt raised earlier this year. Through the proposed transaction, the ADB and the IFC will assist NBG raise a significant amount of Tier II capital at longer dated maturities that are normally out of its reach. The choice of listed bonds instead of a subordinated loan will provide greater transparency, visibility and potential liquidity for the facility and will create a demonstration effect that will enhance Nedbank’s ability to attract market interest for future long-dated issues.

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