The notes, which are due in 2029, will be issued by the lender under its updated $4 billion multi-issuer euro medium-term note programme.
Sunday 09, June 2019 BY KUDAKWASHE MUZORIWA
Fitch Ratings has affirmed its ‘BB’ ratings on South Africa-based Standard Bank Group's (Stanbic) $400 million 5.95 per cent Basel III-compliant Tier 2 subordinated notes.
The notes qualify as Basel III-compliant Tier 2 securities and contain contractual loss absorption features, which will be triggered at the point of non-viability of the issuer.
The rating agency stated that the notes are rated one notch below Stanbic's ‘bb+’ Viability Rating (VR), reflecting their higher loss-severity risk relative to senior unsecured instruments, which is due to their subordinated status and the presence of a contractual non-viability loss absorption clause.
Additionally, the notes are subject to permanent partial or full write-down upon the occurrence of a ‘non-viability event’, as determined by the South African regulator.
Stanbic’s notes have an issuer call option after five years and any redemption is subject to regulatory approval.