Standard Bank, the largest bank in Africa by assets, has announced a strategic partnership with Zeda Limited for its inaugural bond issuance following Zeda’s listing on the Johannesburg Stock Exchange (JSE). Zeda Limited, recognized as Southern Africa’s leading integrated mobility solutions provider, was unbundled from the Barloworld Group in 2022 and subsequently made its debut on the JSE.
Zeda boasts a diverse portfolio of notable assets, including short-term rental, long-term leasing, and car sales businesses, and operates under the globally recognized Avis and Budget brands. The company reported impressive financial results last year and declared its first dividend since its listing, reflecting its strong performance and growth trajectory.
Luvuyo Masinda, CEO of Corporate & Investment Banking at Standard Bank, expressed pride in the partnership, stating, “We are proud to have partnered with Zeda Limited from its inception and during the unbundling. We have seen the fruits of this partnership firsthand as the company has gone from strength to strength.” He emphasized Standard Bank’s instrumental role in refinancing Zeda’s existing funding and establishing a JSE-Registered Bond Programme, which led to the successful inaugural bond auction aimed at accessing the debt capital market to diversify Zeda’s funding base.
The inaugural bond auction received an overwhelming response, with R2.36 billion in bids submitted across the notes offered by a wide range of institutional investors. This strong demand enabled Zeda to increase the issuance, ultimately raising a total of R850 million at highly favorable pricing, clearing 5 basis points below the price guidance provided for both notes on offer. The significant investor interest underscores Zeda’s robust performance and the positive sentiment surrounding the company.
Allister Lamont-Smith, Debt Capital Market Transactor at Standard Bank, remarked;
Standard Bank is proud to have walked this journey and partnered with Zeda in accessing the Debt Capital Market. We are also pleased to have played a role in developing the market by bringing a new issuer such as Zeda to market.
Ramasela Ganda, Group Chief Executive Officer of Zeda Limited, highlighted the importance of this partnership, stating;
We are extremely proud to partner with a bank that supports our integrated mobility strategy in Southern Africa. Funding is one of our strategic objectives, which seeks to lower the cost of funding as we invest in the growth pillars of the business. Zeda is confident that the first bond auction will be a key enabler to achieving this objective and will unlock value for our shareholders. We believe this is the first of many more successful collaborations.
Luvuyo Masinda concluded by emphasizing the significance of Zeda’s contributions to the region, stating, “Companies like Zeda delivering mobility solutions across Southern Africa illustrate what we mean when we say Africa is our home; we drive her growth.” This partnership marks a significant milestone for both Standard Bank and Zeda Limited, setting the stage for future growth and collaboration in the African market.
