African Bank, the South African lender with a focus on low-income earners, said on Friday it hopes to tap international bond markets in the next 12 months and to issue local bonds twice per year to fund its business.
The bank, which also finances customers through its Ellerines furniture stores, has a $1 billion bond programme at the London Stock Exchange. It had its debut international issue in June for $300 million.
Abil, as it is commonly known, also plans two local issues annually under a 17 billion rand ($2.35 billion) programme. "We're sitting on 17 billion rand capacity and as and when we need funding, as we have said, twice a year we will go and issue," said Nithia Nalliah, Abil's Chief Financial Officer.
"We will do the same globally. At least once a year we will go out and issue. The size of that will depend on how the global market is at that point in time."
Abil will also issue fixed-coupon preference shares every three to six months. The bank sold shares worth 250 million rands in July, the first tranche of a 1.2 billion rand programme.