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Firstrand — FirstRand Bank — Debt Investor Presentation (March 2026)
41 slides from Firstrand's debt investor presentation, March 2026
Slide 1: Overview of the FRB Cape water performance-based bond transaction
Overview of the FRB Cape water performance-based bond transaction March 2026
Slide 2: Important notice
Important notice 2 The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation or law or an offer or solicitation of an offer to buy or sell securities or financial instruments or any advice or recommendation to buy such s
Slide 3: Term sheet and transaction structure
Term sheet and transaction structure
Slide 4: Term sheet – bond investors
Term sheet – bond investors 4 Issuer FirstRand Bank Limited (issued under its R100 billion DMTN programme) National scale credit rating Aaa.za (Moody’s), zaAAA (S&P Global) Nominal target R2.5 billion Note tenors 5 years and 3 months (bullet) Instrument type Floating Pricing reference rate 3m JIBAR,
Slide 5: Project funding direct to TNC-SA
Transaction structure 5 FirstRand Bank Limited Non-PBO OBF Noteholders Project and Success Conditional Project Payment funding Outcomes-based funders Issuer Funding • R2.5 billion senior, unsecured Agent (OBFs) Donor Catalytic performance-based bond issued by FRB Non-PBO OBFs PBO OBFs Funds# at an i
Slide 6: OBFs’ contribution
Outcomes-based funding model – success payments 6 * Pre-defined project Investor returns Outcomes-based funders KPIs attained OBF payment Investors’ returns linked Project risk partly underwritten Success rate OBF fully funded upfront, to project success by bond investors with payments to TNC Hectar
Slide 7: Creating a new funding model
Creating a new funding model 7 Traditional funding model New funding model
Slide 8: The environmental and socio-economic benefits
The environmental and socio-economic benefits 8 Increased water Biodiversity reclamation through conservation and catchment restoration habitat recovery Reduced fire risk and Job creation and local improved landscape economic stimulation resilience to climate change
Slide 9: The project aligns with several SDGs
The project aligns with several SDGs 9 Income earned by micro, small and medium The project has created over 1 300 green job enterprises (MSME) contractors in terms of opportunities in the Cape Region, of which 50% contract amounts awarded to Contractors for are women. This contributes meaningfully
Slide 10: The importance of water
@ FirstRand Bank The importance of water
Slide 11: Climate change exacerbates the issue of water scarcity in SA
Climate change exacerbates the issue of water scarcity in SA 11 The National State Water Report: South Africa (SA) is one of the driest countries in the world, with an average annual rainfall of about 450 mm, compared to the global average of 860 mm – this makes efficient water management essential
Slide 12: The importance (and insecurity) of water
The importance (and insecurity) of water 12 Water security and Population growth Food and climate change and urbanisation job security In South Africa, climate change is By 2030, South Africa's growing Agriculture consumes 60% of SA's water projected to cause an increase in population and urbanisati
Slide 13: Securing water through catchment restoration
Securing water through catchment restoration 13 ● Reducing water demand is not sufficient to ensure water security in SA ● Water security starts at the source – healthy Water security and climate change catchments naturally capture, filter and channel rainfall to dams ● Many of SA’s SWSAs are infest
Slide 14: Why focus on the removal of IAPs for this project?
Why focus on the removal of IAPs for this project?
Slide 15: The project
The project 15 Water yield reduction due to IAPs in the The underlying project objective is to continue Cape Region’s sub-catchments. the removal of IAPs in priority sub-catchments of the Western Cape Water Supply system to restore native biodiversity and reclaim water losses due to alien plant inva
Slide 16: How does the removal of IAPs help tackle water scarcity issues in SA?
How does the removal of IAPs help tackle water scarcity issues in SA? 16 IAPs are typically trees that use substantially more water than the native drought-adapted vegetation, reducing the amount of water available to flow into dams The Western Cape Water Supply System is estimated to lose 55 billio
Slide 17: Removal of IAPs is the most effective and cost-efficient method
Removal of IAPs to restore water catchments is the most effective and cost-efficient method for increasing stream flow 17 Catchment restoration increases water supply at lowest unit cost 0 10 20 30 40 50 60 70 Removal of IAPS Desalination Groundwater exploration Water reuse Voëlvlei storage scheme C
Slide 18: Project execution partners
@ FirstRand Bank Project execution partners
Slide 19: Selecting the correct project implementer is key
Selecting the correct project implementer is key 19 Responsibilities: • Strategic planning and programme design • Established in the US in 1951, The Nature Conservancy (TNC) • Field implementation and contract has grown into a leading global environmental organisation management • With over a millio
Slide 20: TNC-SA’s track record in IAP removal
TNC-SA’s track record in IAP removal 20 TNC-SA’s impact through the existing Greater Cape Water Fund Olympic pools Household Total area cleared: 60 652 ha (from April 2019 – May 2025) equivalent equivalent Initial Clearing: 31 464 ha Follow-up Clearing: 29 188 ha Current Maintenance: 259 ha Re
Slide 21: Verification and design agent: Conservation Alpha
Verification and design agent: Conservation Alpha 21 Conservation Alpha (CA) aims to transform the funding and implementation of conservation • Over 80 years of collective experience at the intersection of conservation and finance • Strong capabilities in impact measurement and verification • Extens
Slide 22: The role and multiplier effect of outcomes-based funding
The role and multiplier effect of outcomes-based funding
Slide 23: Donations vs outcomes-based funding
Donations vs outcomes-based funding 23 OBFs’ funds will achieve their intended impact with project risk partly underwritten by bond investors Nature of contribution Risk Accountability A donation is a voluntary gift with no Donors bear outcomes risk, i.e. Donations typically involve limited expectat
Slide 24: Donations vs outcomes-based funding
Donations vs outcomes-based funding 24 OBFs’ funds will achieve their intended impact with project risk partly underwritten by bond investors Impact measurement Duration Stakeholder engagement Donations often involve limited Donations are usually one-off Donors generally have minimal reporting on th
Slide 25: Outcomes-based funder considerations
Outcomes-based funder considerations 25 Catalyst for funding Catalyst for funding Outcomes-based funders water solutions outcomes not inputs Traditional Outcomes-based • Outcomes-based funders can change the funding model funding model • Outcomes-based funding is conditional on creation of impact an
Slide 26: The role of outcomes-based funders
The role of outcomes-based funders 26 A partner in unlocking private capital for nature • OBFs committed R152.5 million • Current engagements paving the way for future water bonds – channelling Global North capital to the biodiverse Global South • Developed new networks of local and international in
Slide 27: How can outcomes-based funders play a catalytic role?
The role of outcomes-based funders 27 How can an outcomes-based funders play a catalytic role? • By committing outcomes-based funding as part of SA’s first nature-focused outcomes-based transaction, OBFs have helped enable a fully-funded project and the first performance-based bond issuance • The bo
Slide 28: Range of noteholder/OBF outcomes linked to project success
Range of noteholder/ OBF outcomes are linked to the level of project success achieved
Slide 29: Range of outcomes
Range of outcomes Non-PBO OBFs (via FRB as Condiional Funding Donor) Non-PBO OBF project and/or success payment Tunding plus accrued interest Ringfonced 46 bos on R2.60n plus accrued interest Cape Water Payment Amount Project Outcome at bond maturity Full Success Partial Success No Success ull Cape
Slide 30: Distribution of Cape Water Payment Amount between OBFs and Noteholders
Distribution of Cape Water Payment Amount between OBFs and Noteholders at maturity relative to Project Outcome 30 R106m (c. 70 bps) R106m R68m (c. 45 bps) R38m 0 0 Success Metric/KPI (ha with IAPs Cleared) Noteholder Project Success Payment Available to be split proportionally to original funding co
Slide 31: Project success metric and bond return outcomes
Project success metric and bond return outcomes 31 Return (bps) Success rate: Reference Rate + c. 130 bps SFRB rate + NPP: Reference Rate + c. 105 bps Floor rate: Reference Rate + 60 bps Hectares of 5 970 ha 6 240 ha 6 390 ha IAPs cleared (96.5% probability) (82.4% probability) (67.7% probability)
Slide 32: Project success metric and bond return outcomes (continued)
Project success metric and bond return outcomes (continued) 32 Potential outcome with regard to measured project success metric – cumulative hectares Probability Additional return of IAPs cleared of outcome above the floor Total bond return Floor rate = Hectares of IAPs cleared ≤ 5 970 96.5% – 3m
Slide 33: Risk/return trade-off
Risk/return trade-off 33 82.4% prob. 120% 140 SFRB rate + 10 bps Success rate = Reference Rate + c. 120 bps + 10 bps = Reference Rate + 95 bps + 10 bps 120 over JibarRate (bps) 100% 96.5% prob. 100 80% over Reference 67.7% prob. Probability 80 60% SpreadSpread 60 Floor rate: Reference Rate + 50 bps
Slide 34: Glidepath with intervention points
Glidepath with intervention points 34 Quarterly reporting trigger Glidepath with interventions • Triggered if after first two semesters a deviation from the path-to-floor (blue line) glidepath for a single semester is: 8 000 • 10% lower from the end of the second semester to end of the fifth semeste
Slide 35: Overview of transaction parties and legal structure
Overview of transaction parties and legal structure
Slide 36: Transaction parties and legal structure
Transaction parties and legal structure 36 Outcomes-based funders (OBFs) APS and Information FirstRand Bank Limited Noteholders Memorandum Conditional Funding Agreement Non-PBO OBFs Conditional (Project and/or Success Project Issuer Funding Payment funding) Technical Agent Donor Agreement PBO OBFs P
Slide 37: Annexures
@ FirstRand Bank Annexures
Slide 38: Water programme: vision
Water programme: vision 38 Water performance-based bond transaction (PBBT) programme* Cape Tugela Orange River Amatole Wolkberg Water PBBT Water PBBT System PBBT Water PBBT Water PBBT Western Cape KZN, Gauteng Multiple Eastern Cape Limpopo • The Cape water PBBT will enable the continuation of the cu
Slide 39: Impact indicators
Impact indicators 39 Performance success metric: Hectares of IAPs removed Additional reporting metrics Cumulative volume of water # women contracted for bond- Volume of water increase reclaimed from polygons based on funded activities/total contracted in catchment over time Le Maitre model staff # o
Slide 40: The project area
The project area 40 • The project continues the work of the Greater Cape Town Water Fund, through TNC-SA, which has been operating for seven years. • The project will specifically focus on high altitude areas that are often remote and inaccessible by vehicle, requiring helicopter transport and speci
Slide 41: Methodology for calculating water reclaimed
Methodology for calculating water reclaimed 41 • The Le Maitre hydrological model estimates water flow reduction due to IAPs and is based on: • Mean annual run-off in an area, sites with higher rainfall = higher volumes of water reclaimed • Groundwater availability in an area, thus sites with wetlan
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