Friday, August 21, 2009

Barclays announces issue of K50bn bond under DMTNP

Barclays announces issue of K50bn bond under DMTNP
Written by Chiwoyu Sinyangwe
Friday, August 21, 2009 4:55:35 PM

BARCLAYS Bank Zambia (BBZ) Plc has announced the successful issue of a K50 billion bond as the first tranche under its K500 billion Domestic Medium Term Note Programme (DMTNP). BBZ head of corporate affairs Webster Malido stated in Lusaka yesterday that the DMTNP was arranged by ABSA Capital, a division of ABSA Bank Limited which was part of the Barclays Group.

Malido stated that the first tranche issued on May 18, 2009 would mature in seven years on the exact corresponding day and month in 2016.

“…K50 billion bond is Series one of tranche one and has been issued as an Unsecured Subordinated Capital Note. It cleared at 250 [bps] basis point above the 182-day Government Treasury bill,” Malido stated. “The bond is listed on LuSE and will trade as BBZ002. Domestic asset managers and insurance houses accounted for the largest chunk of the orders.”

According to official market data, this is BBZ’s second debt issue since its debut issue in April, 2003.

Malido stated that the notes had been arranged and jointly placed by ABSA Capital with Intermarket Securities Ltd as the sponsoring broker while Lewis Nathan Advocates were the legal advisors, and Grant Thornton was the transfer and paying agent.

Lusaka Stock Exchange (LuSE) Central Securities Depository would act as Trustee.

Commenting on the development, BBZ managing director Zafar Masud expressed confidence that the successful issue by the country’s largest commercial bank would pave way for other issuers to come to the market.

Masud said Barclays Bank was a pioneer in the local debt capital market and had a responsibility to continue to support it.

The BBZ bond was launched earlier this year by finance minister Dr Situmbeko Musokotwane.

And according to the official note from BBZ accompanying the announcement, the listing statement was not a prospectus, nor did it constitute any invitation to the public to subscribe for shares or notes issued by the bank, and that it would, consequently, not be registered with the registrar of companies.

“It is, rather, supplied in compliance with the LuSE listings requirements to provide note holders and the public with appropriate and necessary information on the programme,” the note read in part. “This listing statement should consequently be read in conjunction with the programme memorandum dated 27 February 2009 (“the programme memorandum”), and definitions contained in the programme memorandum apply throughout this listing statement, unless otherwise stated or the context requires otherwise. A copy of the programme memorandum is available from the issuer upon request. The notes were listed on LuSE on Monday 20th July, 2009.”

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