On August 15, 2023, New Development Bank (NDB) successfully issued its debut ZAR bond in the South African bond market, becoming the highest rated issuer to issue in this market since 2015.
The book was well supported, with over R2.5bn in bids across both the 3- and 5-year tranches allowing NDB to exercise its option to upsize the trade from R1bn to R1.5bn. 94% of bids were within or lower than price guidance, with the outcome representing the tightest spreads achieved by any non-Government issuer in the South African Debt Capital Markets in 2023.
The orderbook was well diversified with 71% of bids being allocated to institutional investors and the remainder taken up by local banks.
Maturity
August 21, 2028
Amount
ZAR 1.0bn
Coupon
3 month JIBAR + 105 bps
Settlement Date
21 August 2023
Issuer rating
AA+ (S&P) / AA (Fitch)
Currency
ZAR
Listing
Johannesburg Stock Exchange
Interest Rate Profile
Floating rate
Tenor
5 years
Trade/Auction Date
August 15, 2023
Arrangers / Dealers
Absa Corporate and Investment Bank, Standard Bank of South Africa Limited