Standard Bank pioneers Africa’s first Flac and ZARONIA transition
16 Feb 2026
Country
South Africa
Year
2026
Sector
Financial Institutions
Business Unit
Debt Capital Markets
Specific Role
Issuer, Arranger
Standard Bank Group demonstrated decisive market leadership by becoming the first South African bank to issue Flac notes, setting a new benchmark for capital market innovation and regulatory alignment, significantly contributing to a stronger financial system.
In a landmark transaction, we successfully issued over R2 billion in a new type of instrument called Flac. This issuance represents a significant step in promoting greater stability in the financial system. Crucially, Standard Bank were also the first to exclusively offer floating rate notes linked to the South African Rand Overnight Index Average (ZARONIA) in a public auction. This bold step places us at the forefront of South Africa's journey to transition from the old Jibar benchmark to a more modern and robust ZARONIA-based interest rate system.
This groundbreaking Flac issuance, combined with our leadership in using ZARONIA-linked notes, underscores our commitment to leading changes in the banking industry. This means shifting our funding methods towards these new Flac notes and moving away from the older Jibar interest rate system to the more reliable ZARONIA.
By leading these crucial changes and actively shaping the future of financial markets, we are driving innovation across the African continent. We are constantly striving to develop pioneering solutions that benefit both our clients and the wider economy.