Absa Capital, one of South Africa’s leading investment banks, and its empowerment partner Vunani Capital, announced today the issuance of a R1bn bond on behalf of the Development Bank of Southern Africa (DBSA).
Today’s announcement follows similar announcements late last year where Absa Capital arranged debt on behalf of the Airports Company of South Africa and Transnet.
The new DBSA bond has been issued under the issuer’s new restated Domestic Medium Term Note (DMTN) Programme and will be listed on the Bond Exchange of South Africa. The bond will have a fixed coupon of 9.45% per annum, payable semi-annually.
Jacques Els, Head of Bonds, Convertibles and Hybrids at Absa Capital, said that there was very strong support for the paper from local institutions, as evidenced by the pricing of the instrument.
Stephen van Coller, Head of Primary Markets at Absa Capital said: “The DBSA is mandated by government to fund infrastructure development within South Africa and the rest of the Southern African Development Community.”
“As lead arranger Absa Capital was particularly proud to help ensure that this very necessary mandate is fulfilled.”
In order to fund infrastructure development the DBSA raises funding from a wide range of sources, including the domestic bond market, and this R1bn bond forms a key part of the issuer’s funding.
“Absa Capital continues to aggressively pursue the position as the country’s leading debt arranger and today’s announcement underscores that commitment,” said van Coller.
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About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.