Standard Bank partners with Daimler Truck Southern Africa to raise R 1.5 billion in successful public bond auction

Daimler Truck is one of the world's largest commercial vehicle manufacturers and, along with its South African subsidiaries, Daimler Truck Southern Africa Ltd and Daimler Truck Financial Services South Africa (Pty) Ltd, provides a comprehensive range of market-leading value-added services across Fleetboard, TruckStore, TruckTraining and Financial Services. All of the company’s products are assembled locally in the East London production plant, and DTSA’s footprint spans across South Africa, Namibia, Lesotho, Botswana, Eswatini, Malawi, Mozambique, Zimbabwe and Zambia, with headquarters in Pretoria.

The bank acted in its capacity as co-arranger in the transaction facilitating an extensive debt investor roadshow to potential investors, while advising DTSA on the most ideal issuance strategy, including the most optimal timing to market, tranches on offer and price guidance.

DTSA managed to raise R 1.5 billion across 2 tranches of notes: a 1-year note and a 3-year note. The public bond auction was well oversubscribed, attracting over R 6.4 billion worth of bids from an investor base of 24 unique investors, and achieved the tightest pricing of any corporate issuer in the South African Debt Capital Market. The 1-year tranche cleared at 59.5bps over 3m Jibar, while the 3-year cleared at 85bps over 3m Jibar. The results of the auction serve as testament to DTSA’s excellent credit metrics and recent performance despite the difficult economic environment, as well as a dynamic and focused management team.

Standard Bank is proud to have an opportunity to use our capabilities, expertise and relationships in the bond market to assist a key client, who also happens to be one of the most prestigious issuers in the market. We have an established relationship with DTSA, serving as a trusted advisor, as well as the arranger on 4 out of their 5 public bond auctions since their unbundling in 2022. We remain committed to supporting companies that contribute towards Africa’s economic growth and look forward to continuing to strengthen our relationship with DTSA and supporting them in their future endeavours.