Capitec Bank Limited issues ZAR1.25 Billion senior unsecured 3 and 5-Year Bonds

Capitec Bank Limited ("Capitec Bank"), a wholly-owned subsidiary of Capitec
Bank Holdings Limited, issued a combination of floating and fixed rate senior
unsecured bonds on 6 May 2011 with redemption dates of 6 May 2014 and 6 May 2016.

The 3-year floating rate bond raised ZAR450 million and was issued at a
credit spread of 220 basis points over the 3-month JIBAR rate.  The initial
rate payable will be 7.775% nominal annual compounding quarterly.

The 5-year fixed rate bond raised ZAR800 million and was issued at a coupon
of 10.52% nominal annual compounding semi-annually.  This was determined by
adding a credit spread of 231 basis points to the government benchmark R203
bond.

This is the fifth issue by Capitec Bank under its ZAR4 billion Domestic Medium Term Note programme which is listed on the interest rate market of the JSE Limited.  Bids in the amount of ZAR4.092 billion were received in total for the above two issues.  These issues coincide with the first maturities under the DMTN programme totalling ZAR490 million.  In total ZAR2.722 billion is now in issue under this programme.

André du Plessis, Financial Director of Capitec Bank said that the healthy investor appetite for the bank’s paper indicates the extent of the capital market’s satisfaction with the bank’s retail banking model.  The funding will be utilised to continue the growth of the bank’s branch network and continued increase in the retail loan book. 

Capitec Bank Limited had 455 branches and 2.8 million clients at 28 February 2011 and has recently had a change in their Moody’s A2.za rating outlook from stable to positive.