South Africa's Old Mutual Life to issue up to R3 billion of bonds

By Reshmi Basu

New York, Oct. 11 - Old Mutual Life Assurance Co. (South Africa) Ltd. said it plans to issue up to 3 billion rand of unsecured subordinated bonds in October under the company's 4 billion rand domestic medium-term note program.

The bond will be callable.

The company said the issue will enhance its capital base.

"We believe that this is an opportune time to raise debt capital to support the growth in our business at a time when South African interest rates are low," said Roddy Sparks, managing director of Old Mutual (South Africa), in a press statement.

Deutsche Bank and Nedbank Capital will act as joint lead managers.

The issuer is a subsidiary of Old Mutual plc. The company is an international financial services group.

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