Standard Bank and Sanlam Life Insurance Limited partnership

Standard Bank is proud to have arranged and executed a partnership deal with Sanlam Life Insurance Limited (Sanlam) to successfully raise R2 billion of Tier 2 Capital in the South African Debt Capital Market, listed on the interest rate market of the JSE. This is a landmark deal as it is the tightest priced Tier 2 issuance by a South African insurer to date.

Sanlam is one of the foremost prominent insurance companies in the country. They offer comprehensive client retirement solutions including life, health, and disability insurance services servicing customers worldwide.

Sanlam and other insurance companies issue Tier 2 Capital as a means of meeting regulatory requirements and ensuring adequate coverage for capital and solvency needs. These instruments serve to bolster the financial standing of the insurer and safeguard policyholders against potential risks.

As the arranger on the deal, Standard Bank played a pivotal role in facilitating this landmark transaction that garnered more than R3.7 billion of bids from a diverse group of institutional investors during a public bond auction.

With the two tranches on offer, a total of R2 billion was raised at clearing spreads that were tighter than any Tier 2 issuance by a South African insurer to date. A 5,5-year note was issued totalling R972 million at a spread of 1,34% over three-month Jibar, while a seven-year note totalling R1,028 billion was issued at a spread of 1,5% over three-month Jibar.

Both Sanlam and Standard Bank are committed in helping grow the African continent, and thus Standard Bank has an excellent understanding of Sanlam’s strategic objectives and operations.

Sanlam is the continent’s largest non-banking financial services provider in more than 30 African countries. It has invested R630 million in the communities it operates in, in the last 10 years alone, through its Sanlam Foundation. A clear indication of their efforts to enhance their presence on the continent with ongoing investment.

Sanlam is a valued strategic client for the bank, with a longstanding relationship that extends across subsidiaries and divisions within the Sanlam group. Over the years, the bank has worked closely with Sanlam to provide tailored financial solutions that meet their specific needs and goals.

This partnership has enabled both parties to leverage their respective strengths and expertise, resulting in a mutually beneficial relationship.

Standard Bank is proud to have assisted Sanlam in this prestigious transaction as well as its continued expansion across the African continent.

We consider this an excellent auction outcome, which is a testament to Sanlam’s strong credit metrics and financial performance.