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Nedbank Capital provides specialist advice, debt and equity raising and execution, and trading capabilities to clients in all major SA business sectors. Clients include the top 200 domestic corporates, parastatals, financial institutions, multinational corporates and major infrastructure and mining projects in Africa as well as emerging black economic empowerment consortiums.
Overview
The cluster comprises three primary businesses, from which it makes its distinctive products, services and solutions available to its clients. These are:
Investment Banking, which includes:
- Advisory services, comprising corporate finance, debt origination and debt advisory services.
- Specialised finance, entailing debt-financing solutions with a portfolio that includes project finance, export credit finance, leveraged debt, acquisition finance, securitisation and structured trade and commodity finance.
- Sectoral specialist teams, providing clients with insight and advice into energy, infrastructure, telecommunications, aviation, mining and resources, retail, healthcare and diversified industrials industries.
Global Markets, which includes:
- Equity Trading, providing hedging and structuring services to corporate, institutional and retail clients. This division exploits the synergies between trading and structuring equities and facilitates black economic empowerment (BEE) transactions. A prime broking service is also offered.
- Fixed Income, Currency and Commodities and Foreign Exchange, offering currency, interest rate derivative and bond-related products as well as proprietary trading in various markets.
- NedGroup Securities (Pty) Limited, offering research, sales and trading services to major institutions.
Treasury
This is Nedbank Group's funding interface with local and international financial and investment markets. All domestic and foreign currency-funding requirements are satisfied and managed through this unit. Treasury also includes the Carbon Finance Unit and offers structured financial solutions.Strategy
For 2011 and beyond the strategic direction for Nedbank Capital remains to drive growth by providing its clients with solutions that meet their unique needs rather than selling them products.Sector-focused teams, specialising in resources, power, infrastructure, telecommunications, BEE, and diversified industrials will continue to cooperate closely with product experts to deliver tailored solutions that enable Nedbank Capital's clients to achieve their objectives.
The continued focus on new business opportunities will be linked to regulatory changes and market trends. Detailed strategies are being developed with the aim of leveraging the growing green economy and renewable energy sources, both of which are already creating a fundamental shift in focus for finance providers around the world.
The expertise gained by Nedbank Capital in recent years in carbon origination, financing and regulation positions the business as a centre of excellence in these areas. This position will be strengthened and extended to provide valuable advisory services to clients around carbon financing. The green positioning is further entrenched by Nedbank Capital's commitment to fund renewable sources of energy and a pipeline of deals in this area is in place and will be pursued in 2011.
A boutique-driven international strategy will see the business building on its sector expertise to expand its offering mainly throughout Africa and, in the case of resources, globally, off the established London platform.
Nedbank Capital will also continue to leverage its close working relationship with Nedbank Corporate to initiate a greater number of Nedbank Group-driven joint deals, as opposed to merely acting as a participant in deals originated by other parties.
Innovative product and solutions development, effective risk management in all aspects of the business, and the attraction, retention and development of talented people constitute the cornerstones of Nedbank Capital's strategy.
Looking forward
We are cautiously optimistic regarding the outlook for 2011 and expect some corporate leveraging to take place. With a stable earnings platform and good credit quality book in place, Nedbank Capital's focus for the coming year will be on increasing the cluster's share of wallet, attracting new clients, and developing innovative solutions that generate growth in income. Disciplined risk management will underpin all these endeavours.The business boasts a broad spectrum of profitable investment banking products and services, which offers good portfolio diversification. With this in mind, Nedbank Capital will focus on acquiring additional stable and diversified funding sources, while reinforcing its integrated investment banking model.
The cluster will continue its theme of responsible investment banking by formalising several of the initiatives it has undertaken – particularly the creation of a sustainability forum that reports on, and monitors, its green activities, carbon financing, ChessKids and renewables financing.
Nedbank Capital's significant investment in updating its trading systems (the Wallstreet implementation) will be further bedded down in 2011, realising operational savings and optimising trading opportunities.
The strong Ecobank Nedbank Alliance will be leveraged further and is expected to gain further traction with the formation of an investment banking arm known as Ecobank Capital.
| This page was updated on 30 March, 2011 |  Return to top |
