LOCAL BANKING NEWS
Landmark Sukuk
transaction for South Africa
Consumers warned about
virtual currencies and
fake Facebook profiles
The National Treasury, the South African Reserve
Bank, the Financial Services Board, the South
African Revenue Service and the Financial
Intelligence Centre issued a warning to members
of the public to be aware of the
risks associated with the use of virtual
currencies for transactions or investments.
While virtual currencies are becoming
popular, the technology is still very new and
therefore may unwittingly expose users to
fraudulent or other criminal activity.
The Ministry of Finance has also warned
the public about numerous Facebook accounts
purporting to be those of the Minister of Finance
Nhlanhla Nene, saying these accounts are part
of ongoing attempts to con the public, both in
South Africa and abroad, of their hard-earned
money. They
include bogus
letters or emails
claiming to be
from the Ministry
and associated
institutions.
South Africa recently concluded its debut US$500 million 5.75-year Sukuk
(Islamic) bond issuance in the international capital markets, informed by a
drive to broaden the investor base and set a benchmark for state-owned
companies seeking diversified funding sources for infrastructure development.
Based on an Al-ijara structure, the Sukuk was priced at a coupon rate of
3.9 per cent, representing a spread of 180 basis points above the corresponding
mid-swap (benchmark) rate. The transaction was oversubscribed by more
than four times, with an order book of US$2.2 billion. The bond will be
listed on the Luxembourg Stock Exchange.
The recent dual tranche issued in July had an investor distribution of 62% US,
19% UK, 17% Europe and 2% from the rest of the world. The Sukuk transaction
investor distribution comprised 59% from the Middle East and Asia, 25% from
Europe, 8% from the USA and the balance from the rest of the world. The lead
arrangers for the transaction were BNP Paribas, KFH Investment and Standard
Bank Group.
FNB partners with
Silicon Cape
First National Bank and Silicon Cape
recently announced a three-year
strategic partnership in funding
and resource support to boost business activity in South Africa. Worth R1
million per annum, this is Silicon Cape’s first long-term partnership since
its inception. Silicon Cape is a non-profit organisation aiming to improve
the ecosystem for technology businesses through providing a platform for
community collaboration, sharing of resources and amplification of tech
innovation. With over 8 500 members, Silicon Cape is one of the
largest entrepreneurial networks in Africa.
“The partnership with Silicon Cape advances our contribution to creating
an enabling environment for SMEs in South Africa,” said Stephan Claassen,
FNB Business Provincial Head: Western Cape. “Through its diverse
membership, Silicon Cape has been at the forefront of efforts to minimise
barriers in doing business among tech-entrepreneurs. The partnership
will also enable us to share best practice and contribute towards better
positioning of tech businesses to potential investors.”
Deputy president pushes for state bank
Deputy President Cyril Ramaphosa has joined the call for the creation of a state bank to
fund entrepreneurs, following the Gauteng ANC’s decision to lobby for the creation of a
state bank to fund black industrialists.
Speaking at a township economic revitalisation summit at Orlando Stadium, Soweto,
Ramaphosa said the idea of a state bank had been around for a long time and was a
response to the need for a “key role player” to fund emerging businesses.
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BANKERSA | Edition 12
2014/12/18 11:25 AM