Chamwe Kaira
South Africa, where Namibian asset managers and pension funds have major investments, has listed three new government bonds.
The National Treasury announced the listing of the R010, R187, and R188 fixed-rate bonds on the Johannesburg Stock Exchange (JSE) following the decision to split the R186 bond into three separate maturities.
The listing took effect on 15 October 2025. It is part of the Split Option first announced on 8 February 2024, which allows holders of the R186 (10.50%) 2025/26/27 bond to voluntarily divide their holdings into three shorter-term instruments until 11 December 2025, before the first maturity date on 21 December 2025.
After that date, all remaining R186 bonds will automatically convert into the new instruments: R010, a 10.5% bond maturing on 21 December 2025; R187, a 10.5% bond maturing on 21 December 2026; and R188, a 10.5% bond maturing on 21 December 2027.
Each bond carries a fixed coupon rate of 10.5% per year, payable on 21 June and 21 December, and will be redeemed at 100% of nominal value upon maturity. Treasury said each of the three bonds was issued with a nominal amount of about R99.05 billion under the Republic of South Africa’s Domestic Multi-Term Note Programme, established in 2019.
The JSE’s approval allows the bonds to trade electronically through the Central Securities Depository in line with settlement rules. Treasury confirmed that the split option remains voluntary until December 2025, after which all remaining R186 bonds will automatically be divided into the new maturities.
Namibia’s investment management sector had total assets of N$284 billion as of 31 December 2024, according to the Namibia Financial Institutions Supervisory Authority. Pension funds accounted for N$119.6 billion, with N$87.2 billion invested within the Common Monetary Area.
Meanwhile, the Standard Bank Group Limited announced plans to redeem its R1.5 billion Subordinated Unsecured Tier 2 Notes (SBT208) earlier than expected, exercising its call option five years before the scheduled maturity.
The notes were issued on 27 November 2020 under the bank’s R50 billion Domestic Medium Term Note Programme and were due to mature on 28 November 2030. The bank will redeem them on 28 November 2025 after receiving approval from the Prudential Authority.
Standard Bank said the redemption will take place at 100% of the aggregate nominal amount, including accrued interest up to the redemption date. The process will follow the Programme Memorandum dated 19 September 2019 and the Applicable Pricing Supplement dated 24 November 2020.
Caption
The South African government has listed three new bonds.
- Photo: File
