7 December 2010
Standard Bank Group raises R1.7bn Blue Granite residential mortgage-backed security
Standard Bank Group has raised R1.7bn for the refinancing of two of its residential
mortgage-backed securities, which are part of its Blue Granite investment programme
in South Africa. The R1.7bn bond was oversubscribed by investors in South Africa.
Blue Granite is a Standard Bank Group investment programme funded though residential
Reynold Leegerstee, Standard Bank Group's Head of Securitisation, says: "Investor
appetite in the securitisation market is definitely returning. What we are seeing
is a further normalisation in market activity though levels remain well below those
seen before the financial crisis. Standard Bank predicts that interest in the securitisation
market will pick up significantly in the next year. Issuers will benefit from a
more competitive funding cost, while investors confidence in structured paper is
returning though transparency and structuring integrity remain a key focus."
Standard Bank issued two notes as part of its Blue Granite programme. The first
R560m note has a settlement date of 22 November 2010 with an issue spread of 75
basis-points above the 3 month JIBAR. The second R1.1bn note has a settlement date
of 22 November 2010 and was issued at 160 basis points above the 3-month JIBAR.