Glossary

 

3-month JIBAR

Is the three-month Johannesburg interbank agreed rate, the average interest rate at which banks buy and sell three-month money. This rate is calculated daily by SAFEX as the average rate quoted by the various banks.

accrued interest

The deposits evidenced by the Retail Notes accrue daily interest on the principal amount. The interest earned since the last interest payment date is typically referred to as the accrued interest. This interest earned is included in the theoretical price of Retail Notes because if a Retail Note is bought in the market, the buyer will receive the interest on the interest payment date and the seller needs to be compensated for the interest accrued to the date of sale of the Note.

BESA

Bond Exchange of South Africa, licensed as a securites exchange under the Securities Services Act. BESA has merged with the JSE.

bid price

Is the price at which a buyer or the market maker is willing to buy Retail Notes. This price will be displayed in the JSE trading system and will be the price at which a noteholder is able to sell Retail Notes in the market.

bid-offer spread

This is the difference between the best bid price and best offer price in the market and is a function of the cost to buy and sell securities on the JSE.

books closed period

Is the period for which a Retail Note trades ex-interest. If a Retail Note is bought during this period, the noteholder will not be recorded as the registered holder for the purposes of the upcoming interest payment and hence will not receive that interest payment.

credit rating

A rating by a rating agency such as FitchRatings that rates the ability of a company to meet its financial obligations.

cum-interest

This means that accrued interest is included in the traded price. Retail Notes traded cum-interest are entitled to an interest payment on the following interest payment date.

Domestic Medium Term Note Programme

This is a programme established by Standard Bank to facilitate multiple note issues. The documentation includes the terms and conditions of various securities that Standard Bank can issue and the process governing such issuance.

events of default

This is a legal term, contained in the terms and conditions of the Notes that defines when the issuer is in breach of its obligations under the Notes, such as non-payment under the Notes.

ex-interest

This means that accrued interest is not included in the traded price. Retail Notes traded ex-interest are not entitled to an interest payment on the following interest payment date.

floating rate

This is an interest rate that varies over the term of the Retail Note and adjusts based on movements of the underlying interest rate, being three-month JIBAR.

Income Tax Act

The Income Tax Act No. 58 of 1962, as amended.

interest exemption allowance

This is the tax-free allowance for interest income according to the Income Tax Act.

JSE

The JSE Limited, licensed as a securities exchange under the Securities Services Act.

JSE broker account

An account opened with a JSE broker that enables an individual or legal entity to trade securities on the JSE in compliance with the Financial Intelligence Centre Act.

last date to trade

This is the last day to trade in Notes in order to be recorded in the Register as a noteholder and accordingly to be entitled to receive interest on the next interest payment date.

market maker/make a market

Standard Bank will act as a market maker in the Retail Notes. This means that Standard Bank will always provide investors with the facility to liquidate an investment in Retail Notes by quoting a bid price on the JSE.

maturity date

Is the date upon which the principal deposit amount in respect of a Retail Note is repaid.

minimum deposit amount

This is the minimum rand amount of Retail Notes that a depositor can subscribe for in the primary offering.

NACQ

Nominal annual compounded quarterly.

offer price

Is the price at which a seller or the market maker is willing to sell Retail Notes. This price will be displayed in the JSE trading system and will be the price at which Retail Notes can be bought in the market.

par value

Is the specified denomination of one Retail Note and is the value used to calculate interest. Par value is typically 100% of the nominal or principal value.

Pricing Supplement Contains

the specific terms and conditions of a Retail Note and should be read in conjunction with the Programme Memorandum. If there is an inconsistency between the Pricing Supplement and the Programme Memorandum, the Pricing Supplement takes precedent.

primary offering

Is the initial offer of Retail Notes to the market.

Programme Memorandum

Is a legal document which, in conjunction with the Pricing Supplement prepared in respect of a specific Note issue, contains the terms and conditions of that Note.

record date

Is the date by which a depositor must be recorded in the register in order to be entitled to receive interest.

register(s)

The electronic register maintained by STRATE, evidencing ownership of Retail Notes.

secondary market

The buying and selling of Retail Notes on the JSE subsequent to the primary offering.

STRATE

STT

The Central Securities Depositary that maintains the securities' register and facilitates the trading and settlement of JSE listed securities.

Securities transfer Tax, replaces the UST paid.

uncertificated

A security in respect of which ownership is evidenced by recordal in an electronic register maintained by STRATE as opposed to by issue of a certificate.

UST

Uncertificated Securities Tax, the tax paid on the buying of certain securities on the JSE.

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