Standard Bank, Africa’s biggest bank by assets and a cornerstone of South Africa’s financial system, has made history by becoming the first African bank to issue FLAC (Funding Liability Absorbing Capacity) notes. Headquartered in Johannesburg, Standard Bank acted as both Issuer and Arranger on the landmark R2 billion FLAC note issuance, structured across four tranches — marking a pivotal moment for South Africa’s debt capital markets and the broader African 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,” says, Paul Burgoyne, Head of Treasury & Money Market at Standard Bank.

The Flac auction, held earlier this year, also underscored Standard Bank’s leadership in the market’s adoption of the new ZARONIA interest rate benchmark. In addition to being the first issuance of Flac notes, this auction was the first time a public note offering was conducted on a ZARONIA only basis. Standard Bank was 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, and this transaction marks another important milestone in strengthening the South African financial system,” adds Burgoyne.

“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,” says Carl Wisener, Head of Debt Capital Markets South Africa.