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Banks (Finance)

FirstRand Bank Limited Declares Cash Distribution for Dollar Custodial Certificates

Strategic Insights

— 1 min read

FirstRand Bank Limited has declared a cash distribution for holders of its dollar custodial certificates (DCCUSD), as per the terms outlined in the Offering Circular dated January 6, 2017. The distribution, set at 1,252.83 cents per unit, will be executed in the exchange traded funds sector of the Johannesburg Stock Exchange (JSE) and will be sourced locally, with no foreign withholding tax applied. The payment will be processed as interest under the established payment infrastructure of the JSE, and the last day to trade to qualify for the payment is Tuesday, June 3, 2025.

Key Takeaways:

  • The cash distribution for holders of DCCUSD is 1,252.83 cents per unit, with a gross local rate of 1,252.83 cents per unit and a net distribution rate of 1,252.83 cents per unit after deducting portfolio and management costs of 537.93 cents per unit.
  • The distribution will be executed in the exchange traded funds sector of the Johannesburg Stock Exchange (JSE) and will be sourced locally, with no foreign withholding tax applied.
  • The payment will be processed as interest under the established payment infrastructure of the JSE, with a record date for eligibility set for Friday, June 6, 2025, and the payment disbursed on Monday, June 9, 2025.
  • Local dividend tax of 20% will not apply to the payment amount, and the distribution will not establish any lending relationship between investors and the issuer.
  • The market category for this announcement falls under the exchange traded funds sector, specifically focusing on dollar custodial certificates.
  • As of the income receipt date, there were 350,000 DCCUSD units in circulation.
  • The DCCUSD certificates cannot be dematerialized or rematerialized between June 3 and June 6, 2025.

Statistics:

  • Gross local rate for the distribution: 1,252.83 cents per unit
  • Portfolio and management costs: 537.93 cents per unit
  • Net distribution rate: 1,252.83 cents per unit
  • Number of DCCUSD units in circulation as of the income receipt date: 350,000
  • Record date for eligibility: Friday, June 6, 2025
  • Payment disbursement date: Monday, June 9, 2025
  • Last day to trade to qualify for the payment: Tuesday, June 3, 2025

Sources:

  • FirstRand Bank Limited press release on the Johannesburg Stock Exchange (JSE) website, May 27, 2025
  • Offering Circular dated January 6, 2017, as referenced in the FirstRand Bank Limited press release

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