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​​Key features of the Jozibond
Is this type of investment for me?

Capital protection
When the bonds mature, the City will pay your capital in full. 

Competitive interest rates
Johannesburg will pay competitive interest rates to the investor. The interest rate will be linked to the three-month JIBAR, the Johannesburg Interbank Agreed Rate, the average rate at which South African banks buy and sell short-term money. It is a market rate that changes daily based on supply and demand dynamics and resets every three months so that the interest rate earned is market-related. JIBAR is published in the daily financial press. The Jozibonds will sell at an interest of three-month JIBAR plus a margin, which will reflect a credit spread that will depend on the debt rating of the issuer and market conditions at the time of issue.
 
Regular interest income
Bonds may be suitable for investors who prefer to receive regular income on their capital throughout the investment period. Jozibonds pay interest four times a year and capital when the bond matures. 

Accessibility
You can buy Jozibonds at any South African Post Office in Gauteng, through a Standard Bank financial consultant or through a JSE broker. You can sell through the call centre or a JSE broker in the secondary market. 
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Affordability
You can invest a minimum of R1 000 per bond and or more, in denominations of R1 000. 

Safety of the transaction
Interest is payable every three months (quarterly) and capital is repayable on maturity date of the bond. The funds are transferred electronically directly into the bank account of the bondholder or investor. Transactions are performed electronically, minimising errors and fraud. All transactions are performed via debit order (no cash, credit card, cheque or debit card).
 
Charges
There are no service charges or commission when buying Jozibonds during the initial Price Offering (IPO) from 8 August to 7 September 2007 when purchased at SAPO. 

Only 1,5 percent on the amount paid out will be charged should you want to sell your investment before maturity. 

Flexibility
Should you need to sell your Jozibond early (before maturity), you can contact the Jozibond call centre and your funds will be in your bank account in 10 days. A fee of 1, 5 percent on the amount paid out will be charged for early redemption. 

Liquidity 
Liquidity refers to the ability of people to get into and out of investments. A "liquid" bond is a bond with a lot of volume that is easy to buy and sell. The Bonds will be listed and trade-able on the JSE.
 
Market related Interest rates

​​Jozibonds pay a floating rate of interest that is referenced to the three-month JIBAR interest rate plus a margin.

  • If three-month JIBAR increases, the interest rate paid on the Jozibonds increases.
  • If three-month JIBAR decreases, the interest rate paid on the Jozibonds decreases.
  • The interest rate on the Jozibonds is adjusted /reset every three months.
  • The rate is set on each interest payment date for the following three-month period.
The interest rate determined on each interest payment date will be fixed for the interest period until the next interest payment date even though three-month JIBAR may change during that period. Interest payments will be made on the interest payment dates, being every three months, as well as on the maturity date. On the relevant interest payment date, the interest due will be paid into the JSE broker accounts of the bondholders that were registered in the register on the predetermined record date. ​​
​​Key features of the Jozibond