Full annual report - African Bank - Investoreports

DMTN, EMTN and Sub-Debt bonds contractual maturity profile
3 000 000 000
2 500 000 000
2 000 000 000
1 500 000 000
1 000 000 000
The group’s average duration of liabilities is targeted to exceed
the average duration of its assets. As at 30 September 2012
the average duration of liabilities, at 18,3 months, exceeded
the average duration of assets, at 15,4 months.
Funding diversification
The group continued its issuance in the international markets
under the EMTN programme while also issuing paper to
several new South African investors both through the treasury
desk and under the DMTN programme.
While longer term listed paper is typically issued under the
DMTN and EMTN programmes, medium term paper, typically
up to a three-year maturity, is used on a bilateral basis by the
treasury funding desk. Instruments are issued to a diverse
range of institutional and money market investors on a dayto-day
basis.
The group relies on minimal funding from the interbank
market, limiting the usage of this market to facilities to
provide back up during periods of higher loan growth,
typically over the calendar year end.
126
500 000 000
0
Feb-13
Mar-13
Sep-13
Oct-13
May-14
Sep-14
Mar-15
■ DMSN ■ EMTN ■ Sub-Debt
Jul-15
Aug-15
Dec-15
Apr-16
Jun-16
Jul-16
Sep-16
The group aims to raise 45% to 60% of total funding from
the treasury desk, while it aims to raise 40% to 55% of total
funding through a combination of DMTN and EMTN
programmes. During the year under review the group further
diversified its debt investor base through the issuance of two
bonds under the EMTN programme, and a tap of the existing
2016 senior bond.
In February 2012 the group issued a USD350 million senior
five-year note to investors in Europe and Asia, while tapping
the existing 2016 senior bond for USD50 million, bringing
that up to USD350 million. In July 2012 the group further
diversified its funding base through the issuance of a
CHF 150 million three-year note to Swiss investors.
This represented the first issuance of a CHF bond by a South
African issuer into the Swiss market in over 20 years,
demonstrating the continued appetite for the group’s paper
in the international market.
The group also launched its range of retail deposit products
to the market on 1 October 2012. The product offering
includes fixed deposits, flexible fixed deposits and notice
Oct-16
Feb-17
Apr-18
Mar-19
Jun-19