Early in December we announced Ecsponent’s publication of a prospectus in respect of a R10 billion Domestic Medium Term Note Programme (DMTN Programme). This new option for investors comes with unique benefits for them, whilst also creating opportunities for growth within Ecsponent.

 

What are listed medium term notes?

 

JSE-listed medium term notes offer an alternative to investors who seek a regular income and superior interest rates. These instruments are easy to understand, simple and inexpensive to invest in and offer a range of investment alternatives.

 

Who can invest in medium term notes?

  • Any legal entity, including trusts
  • Any person aged 18 years or older

 

What are the features of these notes?

Notes offer:

  • Stable, predictable income through monthly interest payments.
  • Fixed three-year term, with the option to buy and sell on the JSE.
  • An easy and inexpensive investment alternative.
  • Income can be offset against exempt interest allowances.
  • An alternative asset class for investors looking to diversify their portfolios.

 

How to invest

The retail notes can be purchased in R100 denominations with a minimum investment requirement of R10 000. Once listed, they can be traded through the JSE.

For more information, contact your Ecsponent adviser.

 

What rates are offered?

 

Type Rate* Minimum investment
Zero-Coupon** 10.66% R10 000
Floating Rate Prime interest rate + 1.5% R10 000
Fixed Rate 9% R10 000
Fixed Rate 10% R100 000
Fixed Rate 12% R1 000 000

 

* Nominal annual compounded monthly (NACM).
** Capital and interest paid at the end of the investment term.

 
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