Story perspectives

Standard Bank Launches Africa's First Loss-Absorbing Notes

2/21/2026

Summary

Story summary

Standard Bank Group issued 2 billion rand of loss-absorbing capacity notes, the first in Africa, to stabilize banks during crises.
The issue drew over 10 billion rand in bids from more than 30 institutional investors.
Paul Burgoyne, Head of Treasury at Standard Bank Group, called the deal the culmination of regulatory efforts.
Moody's calls the framework credit positive, signaling a shift to private-sector solutions in South Africa's banking sector.

History

Historical Context

In 2018, the South African Reserve Bank established a Financial Stability Framework to enhance banking resilience, following the 2008 financial crisis that exposed vulnerabilities in the sector. This initiative attracted over 10 billion rand in bids from investors and reflects a shift towards private-sector solutions, aiming to foster a stable financial environment essential for economic growth and investor confidence in South Africa.

1 of 2

Story summary

Standard Bank Group issued 2 billion rand of loss-absorbing capacity notes, the first in Africa, to stabilize banks during crises.
The issue drew over 10 billion rand in bids from more than 30 institutional investors.
Paul Burgoyne, Head of Treasury at Standard Bank Group, called the deal the culmination of regulatory efforts.
Moody's calls the framework credit positive, signaling a shift to private-sector solutions in South Africa's banking sector.

1 / 2