FirstRand, a leading financial services group co-founded by South African tycoon Laurie Dippenaar, has received approval to list a new senior unsecured bond on the Johannesburg Stock Exchange (JSE) to bolster its debt portfolio and promote long-term financial stability.
FirstRand boosts capital with $16.2 million bond
The newly approved FRC513 senior unsecured notes, with a value of R300 million ($16.22 million), were unveiled on Thurs., May 9. Issued at par value, the notes offer investors an attractive opportunity to participate in FirstRand’s growth trajectory.
This issuance brings the total amount outstanding under the company’s seven-year bond program to R41.01 billion ($2.22 billion).
The seven-year note, established under a bond program dating back to Nov. 29, 2011, marks a significant step for FirstRand as it seeks to strengthen its regulatory capital position, optimize its capital structure, and fuel its growth ambitions.
FirstRand announces bond interest dates
Scheduled to list on May 13, 2024, the senior unsecured notes’ first interest payment is set for May 31, 2024, with subsequent payments following semi-annually on Feb. 28, May 31, Aug. 31, and Nov. 30 until the bond’s maturity on Feb. 28, 2031.
The notes are part of FirstRand’s authorized program with a total issuance limit of R60 billion ($3.25 billion).
They feature a floating coupon rate linked to the three-month Johannesburg Interbank Average Rate (JIBAR) plus 1.8 percent, enhancing liquidity and streamlining credit risk management.
Laurie Dippenaar’s $350 million FirstRand stake
FirstRand, Africa’s leading financial services group by market capitalization, was co-founded by Laurie Dippenaar in 1977. The group provides a diverse range of financial products and services to individual and corporate clients across the continent.
Dippenaar currently holds a 1.76-percent stake in FirstRand, representing 98,726,988 shares. With his stake valued at more than $340 million, he ranks among South Africa’s richest individuals.
