BY:TANA MALINGA
Standard Bank, Africa’s largest bank by assets, has become the first African bank to issue Flac notes. The bank acted as issuer and arranger in the successful execution of a R2 billion Flac note issuance structured across four tranches.
Flac notes are new regulatory instruments introduced by the South African Reserve Bank to strengthen the resilience of South Africa’s banking system. The move follows similar regulatory developments implemented in European markets over the past decade. All systemically important banks in South Africa will be required to issue Flac notes.
The inaugural Flac bond auction attracted more than R10 billion in bids from over 30 institutional investors, representing a strong vote of confidence from local investors in Standard Bank and the broader banking sector.
“This important transaction and transition towards both Flac and ZARONIA-linked instruments is the culmination of many years of legal and regulatory work, as well as extensive institutional investor engagement,” said Paul Burgoyne, Head of Treasury & Money Market at Standard Bank.
The auction, held earlier this year, also highlighted Standard Bank’s leadership in adopting the new ZARONIA interest rate benchmark. In addition to being the first issuance of Flac notes, it marked the first public note offering conducted on a ZARONIA-only basis. Standard Bank was also the first bank to issue ZARONIA-linked bonds in May 2025.
“We are proud to have been able to lead the market in both Flac and ZARONIA supports, and this transaction marks another important milestone in strengthening the South African financial system,” Burgoyne added.
Carl Wisener, Head of Debt Capital Markets South Africa, said the initiative reflects the bank’s commitment to innovation and market development.
“By leading this shift and shaping the evolution of the debt capital market, Standard Bank is actively driving structural innovation within South Africa’s financial market and setting the foundation for a more resilient funding ecosystem,” he said.
