Chamwe Kaira
Sanlam Life Insurance Limited has announced plans to issue notes under its ZAR12.5 billion subordinated note programme, in line with its updated programme memorandum.
The programme allows the insurer to borrow up to N$12.5 billion from investors by issuing debt securities known as notes.
The programme was first set up in July 2006 and has been updated in 2013, 2016 and 2021. It allows Sanlam Life to raise funding over time by issuing subordinated notes on a continuous basis.
The notes may be issued through one or more appointed dealers, depending on each transaction.
Details of each issuance will be outlined in a pricing supplement. This will include the total amount, maturity period, interest rate, payment dates, pricing, redemption terms, currency and listing details.
These will be read together with the programme memorandum and information statement.
The structure allows flexibility. Notes can be issued in different forms and amounts, based on market conditions and investor demand at the time.
Sanlam Life Insurance traces its origins to 1918, when it was established as a mutual life insurance company.
The business later expanded to offer a wider range of financial services through various divisions and subsidiaries.
In 1998, the group demutualised and transferred its assets and liabilities into the current structure. Its parent company, Sanlam Limited, was listed on the Johannesburg Stock Exchange (JSE), A2X markets and the Namibian Securities Exchange (NSX).
The note programme forms part of Sanlam Life’s capital management strategy. It gives the company access to debt markets to support its operations and growth plans.
