FirstRand becomes first issuer to raise 35 year funding in South African Debt Capital Market

FirstRand today announced that it has concluded a highly successful bond issuance and in the process became the first issuer to raise 35 year funding in the South African fixed income market.

A variety of senior unsecured debt instruments were issued, ranging in maturity from just over 4 years to 35 years, and including fixed-rate, floating-rate and inflation-linked securities. A total of R3.3 billion cash and the issuance was oversubscribed by R2.2 billion.

FirstRand regularly accesses the local debt capital markets (at least once per annum, but often more frequently) as part of its broader funding and liquidity management activities. It bases its capital markets issuance strategy on several factors. These include investor demand, market pricing and the Group’s funding strategy which places emphasis on diversifying funding sources and, in the debt capital markets, on extending the term profile.

“We are very pleased with the success of the bond issuance, which is in line with our strategy to diversify and lengthen our funding profile. The Group’s funding strategy aims to provide the necessary financial resources to deliver on FirstRand’s growth objectives,” said Andries du Toit, Group Treasurer.