Standard Bank bonds go digital

Standard Bank Namibia has warned holders of its SBKN27 bonds that their notes will cease to be tradable from 19 October unless they are converted from paper certificates into electronic records.

In a notice dated 9 October, Standard Bank Namibia Limited said holders must complete the dematerialisation process and transfer their notes into the Namibia Central Securities Depository (CSD) system to maintain their ability to trade the bonds.

The notes are currently held in certificated form, meaning ownership is represented by physical bond certificates rather than electronic records.

Dematerialisation involves cancelling the paper certificates and replacing them with electronic records of ownership held within the CSD system.

The bank said the register for SBKN27 would be closed from 12 October to 19 October, inclusive. During this period, transfers and amendments to the register will not be permitted, except those required to complete the dematerialisation process.

What bondholders must do

Investors are required to appoint a registered stockbroker or Central Securities Depository Participant (CSDP), instruct the appointed intermediary to open a central securities account and submit the original bond certificate for processing.

Certificates may be delivered by hand or secure courier.

Standard Bank Namibia has encouraged noteholders to complete the process as soon as possible to avoid losing the ability to trade their holdings from the deadline.

The bank said dematerialisation would improve the tradability of the notes on the Namibia Securities Exchange, speed up and secure settlement, and allow interest payments to be made directly into nominated bank accounts.

It would also remove risks associated with physical certificates, including loss, theft, damage, forgery and misplacement.

Investors seeking further information can contact Yolande Fourie, head of global markets, at [email protected], or Danie Rourke, head of treasury and capital management, at [email protected].