Picture: FINANCIAL MAIL
Picture: FINANCIAL MAIL

STANDARD Bank’s debt primary markets team said on Thursday that it had helped local clients issue bonds and securitisations worth more than R40bn so far this year.

Megan McDonald, head of debt primary markets, said the strong bond issue showed that clients were taking the impact of Basel 3 rules "very seriously" and increasingly turning to the capital markets for their funding requirements.

"While issuance in the securitisation markets continues to recover, we have seen record issuance in the debt capital markets this year," she said.

Andrew Costa, head of debt capital markets, said Standard Bank had experienced strong activity this year in several sectors and it expected bond issuances to be at a record high in 2012.

Standard Bank has just successfully closed a R1bn, five-year term regulatory capital issue on behalf of Liberty Life to local institutional investors.

The issue, which was three times oversubscribed, was a refinancing of existing regulatory capital and will be listed on the JSE’s bond market.

"Even though the bond market is particularly buoyant at the moment, we were nonetheless surprised at the extent of enthusiasm for the paper," Mr Costa said.

"What made it easier is that Liberty Life is a quality issuer with a quality brand and a good AA rating," he said.