FirstRand Bank Limited (FRB) has taken a strategic step in its financial operations, announcing a comprehensive capital reduction for its FRS312 notes. The bank, a stalwart in South Africa’s financial sector, has meticulously executed this action in line with the terms and conditions of its R 60 billion note programme, initially established on November 29, 2011. Simultaneously, noteholders are informed of the accrued interest payment associated with this alteration.
The FRS312 notes, bearing the ISIN ZAG000190331, have witnessed a remarkable change in their nominal amount. A resolute reduction from R 100,000,000.00 to R 0.00 has been executed, an action of profound consequence. The settlement/redemption amount corresponding to this capital reduction is specifically outlined at R 100,901,879.00. This pivotal transformation will become effective on the imminent pay date/early redemption date of September 11, 2023.
Beyond the capital reduction, FirstRand Bank has upheld its commitment to noteholders by facilitating an accrued interest payment. The considerable accrued interest amount of R 1,719,452.05, encompassing the interest interval spanning from June 28, 2023, to September 10, 2023, is inclusively incorporated within the settlement amount. The FRS312 notes had been associated with an annualized interest rate of 8.368%.
Crucially, the record date for actualizing this capital reduction and effectuating the interest payment has been set for September 8, 2023. A notable facet of this narrative is the underlying reason for the nominal amount reduction of the FRS312 notes. This transformation is a consequence of FirstRand Bank’s proactive decision to execute an early redemption of these notes, meticulously aligned with the stipulated terms and conditions associated with the FRS312 notes.
The pivotal role of Debt Sponsor for this strategic initiative has been executed by RAND MERCHANT BANK, a prominent division of FirstRand Bank Limited. This contribution has been instrumental in orchestrating a seamless capital reduction process and the subsequent accrued interest payment, signifying a collaborative commitment to the well-being of the noteholders.
This financial development stands as a significant milestone for FirstRand Bank Limited. The institution’s pragmatic approach in managing its debt portfolio has translated into this decisive capital reduction, echoing the bank’s strategic acumen. By adhering to the terms and conditions that govern the FRS312 notes, FirstRand Bank reinforces its steadfast commitment to transparent and prudent financial practices.
In Summary:
| Aspect | Detail |
|---|---|
| Bond Code | FRS312 |
| ISIN | ZAG000190331 |
| Nominal Amount Before Reduction | R 100,000,000.00 |
| Reduction in Nominal Amount | R 100,000,000.00 |
| Nominal Amount After Reduction | R 0.00 |
| Settlement/Redemption Amount | R 100,901,879.00 |
| Pay Date/Early Redemption Date | September 11, 2023 |
| Record Date | September 8, 2023 |
| Accrued Interest Amount | R 1,719,452.05 (included in settlement) |
| Annualized Interest Rate | 8.368% |
| Interest Period | June 28, 2023 – September 10, 2023 |
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