Nedbank Group
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Sustainability is about ensuring financial prosperity and stability for our investors and staff, integrating social and environmental responsibility for our local communities and the countries in which we operate, and remaining relevant and accessible to our clients
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Nedbank Capital seeks to provide seamless specialist advice, debt and equity raisings and execution and trading capabilities in all the major South African business sectors. Principal clients include the top 200 domestic corporates, as well as parastatals, leading financial institutions, non-South African multinational corporates and clients undertaking major infrastructure and mining projects in Africa, as well as emerging black economic empowerment (BEE) consortiums.
The focus remains on proactively offering client
      solutions, leveraging off the extensive regional
presence and industry specialisation, and
                           enhancing client-focused structures.

Debt Capital Markets deals with securitisation and bond origination businesses,and provides interest rate solutions. In 2006 the division’s asset-backed commercial paper programme, Synthesis, grew its portfolio from R4,5 billion to R7,5 billion, significantly increasing its market share and writing a significant amount of all new conduit business during the year.

Equity Capital Markets, the equity derivatives operation, provides hedging and structuring services to corporate, institutional and retail clients and includes an alliance with Macquarie Bank Limited.This division exploits the synergies between trading and structuring equities, and facilitates BEE transactions.

Global Markets focuses on providing the bank’s client base with currency, interest rate derivative and bond-related products as well as proprietary trading in the various markets.

Investment Banking includes the group’s corporate finance, private equity and coverage teams. Funds under management in the Private Equity portfolio amount to R1,1 billion.

Specialised Finance provides debt financing solutions with a portfolio of services, including project finance, leveraged debt, acquisition finance, structured trade and commodity finance, and structured financial solutions.The division also has three sectoral specialist teams that serve as Nedbank Capital’s knowledge hub in these sectors – Energy, Infrastructure and Mining and Resources. In addition, the division also covers retail, healthcare and diversified industrials.

Treasury is the group’s funding interface with financial and investment markets, locally and internationally. All of the group’s local and foreign currency funding requirements are executed and managed through this unit.

Nedcor Securities (Pty) Limited is the institutional equities business of the group. It provides research, sales and trading services to major institutions. Its strong domestic franchise saw it benefit enormously from increased volume and value traded on the JSE during 2006.

High-level listings and capital-raising exercises, include the following:

  • The facilitation of Eland Platinum’s successful listing on the JSE.
  • Capital raising in excess of R1 billion for Enaleni Pharmaceuticals’ acquisition of leading generics pharmaceutical company Cipla Medpro. The equity raising was more than three times oversubscribed.
  • Appointment as joint co-lead arranger and underwriter to the largest BEE mining empowerment transaction to date – the creation of the R16 billion new Kumba entity.
  • Origination of R500 million senior, unsecured two-year notes for Netcare through a private placement with select institutional investors.
  • Appointment as co-lead manager on the NationalTreasury’s foreign bond issue for the 2006/7 fiscal year.
  • Neotel–co-leadarrangerandunderwriterofR2billionbridgingfinancefor the second network operator.
  • Agence Française de Développement (AFD) arranger of 12-year €40 million external subsidised funding for the purpose of providing affordable housing to low-income households.
  • Lafarge SA (Pty) Limited – sole arranger and underwriter of R1,1 billion funding for the empowerment transaction.
  • International Ferro Metals – joint underwriter and arranger for its R1,9 billion ferro-chrome mining and smelting operation.
  • Paladin Finance Limited – joint underwriter and arranger for the establishment, development, construction and operation of an R850 million uranium mining and ore treatment facility at Langer Heinrich in Namibia.
  • Tshwarisano – joint lead adviser and arranger in its acquisition of a 25% share in Sasol Oil.

 

Design elementNEDBANK CAPITAL WAS THE FERROMETALS JOINT UNDERWRITER AND ARRANGER FOR THEIR R1,9 BILLION FERRO-CHROME MINING AND SMELTING OPERATION.

 

Nedbank Capital joins forces with ABN AMRO

Nedbank Capital joined forces with Dutch investment bank ABN AMRO during 2006 to offer clients better access to international capital markets. The focus of the partnership is providing access to corporate bonds, syndicated loans,acquisition finance and international equity distribution for new listings, rights issues and secondary block trades.

ABM AMRO was selected as the partner in the alliance because it was the only independent house that ranked in the top 10 in both debt and equity capital markets worldwide.This provides an avenue for South African corporates who want to tap the high-yield bond markets.