Investec places over R1bn in subordinated debt

Comment on this story


InvestecCEO

Independent Newspapers

Investec chief executive Stephen Koseff. Photo: Simphiwe Mbokazi.

Investec has placed in excess of R1 billion in five different bond issues between April and October this year.

Saabir Karim of Investec Financial Products said that since April the specialist banker has been issuing subordinate debt that was fully Basel III compliant as they contained the SARB-prescribed provisions.

“Our bonds are structured as guided by the South African Reserve Bank (SARB) to make them currently‚ fully Basel III compliant as they contain the SARB-prescribed provisions. We’ve considered an alternative methodology where changes in the regulatory environment in the future could make instruments compliant at that point. The preference was to rather educate investors on what deems a bond to be compliant Tier II capital from a bank regulation perspective and raise capital on that basis.”

The notes were also explicitly rated in July 2012. - I-Net Bridge


sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

     

Join us on

IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks