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 divisions 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 banks client base with currency, interest rate derivative and bond-related products as well as proprietary trading in the various markets.
Investment Banking includes the groups 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 Capitals 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 groups funding interface with financial and investment markets, locally and internationally. All of the groups 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:
NEDBANK 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 AMRONedbank 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.