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Media release

Media release

Absa’s debut Flac issuance draws strong support, underscoring deep market liquidity and investor confidence in the Group’s credit profile and strategy

20 February 2026

Absa has reinforced its leadership in South Africa’s capital markets with the successful issuance of R3.2 billion Financial Loss-Absorbing Capacity (Flac) notes, all linked to ZARONIA. This landmark transaction marks Absa’s first Flac issuance, representing a major step in building the bank’s loss absorbing capacity in alignment with evolving regulatory requirements.

“Investor interest was particularly strong. Against a target of R3 billion, the auction received R8.41 billion in bids, resulting in the notes being oversubscribed 2.65 times,” says Richard Klotnick, Group Treasurer.

As part of the transaction, Absa offered notes with 4, 6, 8, and 11‑year maturities, each featuring a one‑year call option prior to maturity. This results in first call dates at years 3, 5, 7, and 10, enabling the notes to qualify as Flac up to the respective call dates.

The strength of this issuance illustrates Absa’s leadership in accelerating the adoption of Flac instruments and promoting market efficiency through competitive pricing across tenors. In fact, we expect most senior bank paper will transition to Flac over time,” says Klotnick.

“It also highlights the bank’s continued focus on regulatory readiness and the advancement of instruments that underpin systemic stability,” he adds.

Absa is committed to driving progress in South Africa’s financial markets by continuing to contribute meaningfully to the growth and resilience of the broader financial ecosystem.

20 February 2026

Absa has reinforced its leadership in South Africa’s capital markets with the successful issuance of R3.2 billion Financial Loss-Absorbing Capacity (Flac) notes, all linked to ZARONIA. This landmark transaction marks Absa’s first Flac issuance, representing a major step in building the bank’s loss absorbing capacity in alignment with evolving regulatory requirements.

“Investor interest was particularly strong. Against a target of R3 billion, the auction received R8.41 billion in bids, resulting in the notes being oversubscribed 2.65 times,” says Richard Klotnick, Group Treasurer.

As part of the transaction, Absa offered notes with 4, 6, 8, and 11‑year maturities, each featuring a one‑year call option prior to maturity. This results in first call dates at years 3, 5, 7, and 10, enabling the notes to qualify as Flac up to the respective call dates.

The strength of this issuance illustrates Absa’s leadership in accelerating the adoption of Flac instruments and promoting market efficiency through competitive pricing across tenors. In fact, we expect most senior bank paper will transition to Flac over time,” says Klotnick.

“It also highlights the bank’s continued focus on regulatory readiness and the advancement of instruments that underpin systemic stability,” he adds.

Absa is committed to driving progress in South Africa’s financial markets by continuing to contribute meaningfully to the growth and resilience of the broader financial ecosystem.