In a joint effort between our Debt Capital Markets (DCM) Origination Team and Syndication and Distribution Team, we secured a 2,23-times-oversubscribed order book for a key franchise client of Nedbank CIB, with a total of R2,23 billion in bids received. The oversubscription enabled OMLACSA to increase the initial targeted issuance volume by R250 million. OMLACSA offered the market a 5-year floating-rate subordinated tier II capital instrument, which was well supported by local banks and institutional investors. The capital raised not only exceeded volume targets, but also met pricing expectations, clearing at 134 bps over a 3-month Johannesburg Interbank Agreed Rate (Jibar), the bottom end of price guidance. The depth of the orderbook, featuring 13 bidders with 11 allocations at the clearing level, including 2 new investors, indicates robust institutional appetite for South Africa’s leading life insurer. OMLACSA is the largest issuer in the insurance sector, with a nominal amount of R11,38 billion outstanding under its domestic medium-term note programme. The notes are irrevocably and unconditionally guaranteed by OML and were listed on the Johannesburg Stock Exchange on 9 May 2024.

This transaction represents the culmination of a well-established and long-standing relationship between OML and Nedbank CIB, highlighting our sustained commitment to mutual success in the local DCMs. The positive outcome also reinforces Nedbank CIB’s position as a leading DCM franchise and underscores our ability to navigate uncertain market conditions and deliver exceptional results for our clients.

Menique Botha, Principal in Nedbank CIB’s DCM Origination Team, says: 'We measure our success by the success of our clients; this achievement is a testament to the trust and collaboration that define our relationship with Old Mutual.'

Martin van der Walt, Group Treasurer of OML, says: 'We are pleased with the outcome of our bond issuance delivered in partnership with our arranger, Nedbank CIB. The significant oversubscription and pricing levels represent one of the best auction outcomes over the past few years. The size of the final issuance allows us to target a smooth maturity profile over time while retaining all key balance sheet metrics to support our debt issuance strategy.'

Old Mutual Life Assurance Company (South Africa) business

OMLACSA is a financial services provider and registered life insurer in South Africa incorporated as a major subsidiary of Old Mutual Limited (OML) in terms of the Companies Act, 71 of 2008. It provides a broad spectrum of financial solutions to retail and corporate clients across several market segments within South Africa, including risk, savings, investments, lending, transactional, income and annuities product solutions. OMLACSA distributes products and services through a multichannel distribution network that caters for unique client needs. The distribution channels include tied and independent advisers, branches, direct and digital channels, and worksites. The company maintains a clear distinction between policyholder and shareholder funds and the management of the assets representing these funds.