Stanbic IBTC opens offer for N30bn corporate bond

Stanbic IBTC, a local unit of South Africa’s Standard Bank has opened an offer for N30 billion in corporate bonds to the public, yesterday 21th October 2018, according to offer documents seen by BusinessDay.
The bond which has a 5-year tenor would have its offer closing next week 28th November 2018, with an average pricing at 15.13 percent, representing a .02bps difference from Federal government bonds issued within the same maturity period yielding 15.15 percent.
This will be the third bond issuance by the bank since inception.
The bank aims to use the bond proceeds to finance its working capital, improve its loan growth and trade financing.
A source confirmed to BusinessDay that the bank is already meeting “with institutional investors on the issuance, with Stanbic capital, FSDH Merchant bank, Rand merchant bank (RMD) and United Capital as major advisers to the issuance.”
Global rating agency Fitch has placed a AAA rating on the bond, while GCR rated the bond AA-.

MICHEAL ANI