Standard Bank, the biggest bank in Africa by assets, has partnered with Zeda Limited for its first bond issuance since listing on the Johannesburg Stock Exchange (JSE).
Zeda Limited is Southern Africa’s leading integrated mobility solutions provider unbundled from Barloworld Group in 2022 and subsequently listed on the JSE.
Among some of its notable assets, the company boasts the short-term rental, long-term leasing and Car Sales businesses in its stable and operates the global Avis and Budget brands. Last year, Zeda reported impressive results and declared its first dividend since listing.
“We are proud to have partnered with Zeda Limited from its inception and during the unbundling. We have seen the fruits of this partnership on a first-hand basis as the company has gone from strength to strength.” says Luvuyo Masinda, CEO of Corporate & Investment Banking at Standard Bank.
“Standard Bank has been instrumental in the refinancing of Zeda’s existing funding and was appointed to establish a JSE-Registered Bond Programme. This partnership culminated in the successful inaugural bond auction to access the debt capital market to diversify its funding base,” says Kaone Lekalake, Executive Vice President, Client Coverage at Standard Bank CIB.
The inaugural bond auction was exceptionally well subscribed for, with R2,36 billion of bids received across the notes on offer from a wide range of institutional investors.
This strong demand allowed Zeda to upsize the issuance to raise a total of R850 million at very favourable pricing, which cleared 5 basis points through the price guidance provided in both notes on offer. The overwhelming investor demand underscores Zeda’s robust performance and highlights the positive sentiment toward the company.
“Standard Bank are proud to have walked this journey and partnered with Zeda in accessing the Debt Capital Market. We are also pleased to have played a role in developing the market by bringing a new Issuer such as Zeda to market.” say Allister Lamont-Smith, Debt Capital Market Transactor at Standard Bank, CIB.
“We are extremely proud to partner with a bank that supports our integrated mobility strategy in Southern Africa. Funding is one of our strategic objectives, which seeks to lower cost of funding as we invest in growth pillars of the business. Zeda is confident that the first bond auction will be a key enabler to achieving this objective and will unlock value for our shareholders. We believe this is the first of many more successful collaborations,” says Ramasela Ganda, Zeda Limited Group Chief Executive Officer. “Companies like Zeda delivering mobility solutions across Southern Africa, illustrate what we mean when we say Africa is our home, we drive her growth,” concludes Luvuyo Masinda from Standard Bank.
About the Standard Bank Group
Standard Bank Group is the largest African bank by assets, operating in 20 African countries, 4 global financial centres and 2 offshore hubs. Headquartered in Johannesburg, South Africa, we are listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB. Standard Bank has a 163-year history in South Africa and started building a franchise outside southern Africa in the early 1990s. Our strategic position, which enables us to connect Africa to other select emerging markets as well as pools of capital in developed markets, and our balanced portfolio of businesses, provide significant opportunities for growth.
As at 31 December 2024, Standard Bank Group had 20 million clients, employed over 50 000 people (including Liberty) and had over 1 150 points of representation and 5 500 ATMs across the African continent. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 19.6% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets.
