1998-09-15: Statement by the South African Reserve Bank on the issuance of
Last Modified Date:
2020-10-08, 08:17 PM
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Taking account of recent increases in the money market liquidity and the continuing unsettled conditions in the international financial markets, the Bank has decided to make a first issue of Reserve Bank debentures in order to establish a role for this paper in the system of accommodation. It is not the intention at this juncture to raise short-term money market interest rates, but to provide an additional investment facility for surplus short-term funds that may become available in the market.An amount of R200 million transferable debentures (issued in multiples of R5 million) will accordingly be offered on tender at 10:00 on Wednesday 16 September 1998. The maturity of the initial issue will be 30 days and the tender will be allocated on a yield basis in ascending order of bids received. The tender is not only open to bids from banks, but bids from the public at large will also be considered, subject to a minimum amount of R5 million. Information regarding further issues will generally be made available on Wednesday mornings at 08:00 on the Reserve Bank's Reuters page RBMN. Bids must be telephonically submitted to the Reserve Bank's Dealing Desk in Pretoria, (012) 313-4957 before 10:00. The Bank reserves the right to accept bids for the full amount on offer in the tender or any part thereof. The Bank also reserves the right to reject any bid or part thereof on any grounds whatsoever. The results of the tender will be announced on Reuters page RBMN at approximately 11:00.Other terms and conditions which are specified on the reverse of the debenture certificates are the following: 1. Debentures will only be issued and transferred in multiples of R5 000 000.2. Debentures will be issued by the Bank at par, and are transferable.3. The holders of these debentures shall be deemed to be exclusively entitled to all benefits and rights arising therefrom and the Bank shall not be obliged to recognise the right of any other person in or to these debentures or to record any such right.4. The Bank undertakes to redeem these debentures at par on the redemption date as set out on the certificates against delivery of the respective certificates or against the rendering of such evidence of the loss or destruction thereof together with such indemnity as may be required by the Bank.5. The date of issue of these debentures shall be deemed to be the date as from which interest is payable thereon as set out on these certificates.6. The interest redemption on these debentures, at the rate as set out on the certificates, shall be payable in arrear to the holder or last transferee on the redemption date. The interest payment shall be calculated according to the actual number of days from the issue date based on a 365-day year.7. The interest on these debentures as well as the capital thereof shall be transferred by the Bank to the credit of the holder or last transferee, and shall be deemed to have been received by the holder or last transferee if it has been so transferred.8. Certificates must be returned to the Johannesburg branch of the Bank or to the Bank's head office at Pretoria for redemption not later than one (1) day prior to the redemption date.9. Transfer of certificates may be effected by signing the record of transfer on the reverse of the certificates.10. Save for the transfer signatures referred to in 9 above (if any), these certificates are issued without any alteration or amendment and no alteration or amendment on the certificates shall be enforceable against or be recognised by the Bank.