In a move aimed at diversifying its investment portfolio and offering investors a unique opportunity, FirstRand Bank Limited has received approval from the Johannesburg Stock Exchange (JSE) to list its FRS341 unsecured structured notes. The listing, scheduled to be effective from 19 July 2023, marks a significant development for the South African financial institution.
The FRS341 unsecured structured notes, classified as single index and currency linked notes, will be issued at 100% of their par value, indicating a transparent and equitable pricing strategy by FirstRand Bank. With a nominal issued amount of R 80,000,000.00, these notes represent a substantial investment opportunity in the country’s financial markets.
A Unique Investment Opportunity
The FRS341 notes are designed to provide investors with exposure to a diverse range of financial instruments, including single index and currency-linked components. The notes are set to mature on 19 July 2024, one year after the issuance date. Upon maturity, investors will receive the final maturity amount, which will be determined and calculated by the Calculation Agent.
Building on a Strong Foundation
The FRS341 notes are part of FirstRand Bank’s broader note programme, which was originally dated 29 November 2011 and has undergone periodic amendments. The programme’s total amount is an impressive R 60,000,000,000.00, reflecting the bank’s commitment to providing investors with a diverse array of investment options.
As of the signature date of the FRS341 pricing supplement, the total notes in issue under the programme amount to R 34,254,169,608.97. This substantial issuance demonstrates the bank’s proactive approach to expanding its offerings and catering to the varying needs of investors in South Africa’s financial market.
Facilitating Investment: Rand Merchant Bank
Rand Merchant Bank, a division of FirstRand Bank Limited, will play a crucial role in the issuance and trading of the FRS341 notes. As the designated dealer for these structured notes, Rand Merchant Bank will provide investors with access to the investment opportunity offered by FirstRand Bank. Their expertise in the financial market will be instrumental in ensuring the smooth facilitation of transactions and interactions between investors and the bank.
Registration and Important Dates
Investors interested in acquiring the FRS341 notes must complete their registration by 17:00 on 14 July 2024. The books will close on 15 July 2024, and all actions related to the notes should follow the stipulated business day convention.
A Forward-Thinking Move
FirstRand Bank’s listing of the FRS341 unsecured structured notes signifies the institution’s commitment to innovation and providing tailored investment solutions. As one of South Africa’s leading financial institutions, the bank continues to explore new avenues to attract investors and drive growth in the country’s financial sector.
The listing of the FRS341 notes on the JSE represents a significant opportunity for investors looking to diversify their portfolios and capitalize on the bank’s expertise and reputation. With the backing of the Calculation Agent’s formula and the transparent pricing approach, investors can confidently explore this unique investment avenue.