South African Reserve Bank Notice 1150 of 2015 Designating the International Finance Corporation

This gazette is also available free online at www.gpwonline.co.za STAATSKOERANT, 13 NOVEMBER 2015 No. 39411 81 South African Reserve Bank/ Suid-Afrikaanse Reserwebank SOUTH AFRICAN RESERVE BANK NOTICE 1150 OF 2015 1150 Banks Act (94/1990): Designation of an institution of which the activities do not fall within the meaning of “the business of a bank” (“International Finance Corporation”) 39411 SOUTH AFRICAN RESERVE BANK No. Date … DESIGNATION OF AN INSTITUTION OF WHICH THE ACTIVITIES DO NOT FALL WITHIN THE MEANING OF “THE BUSINESS OF A BANK” ("INTERNATIONAL FINANCE CORPORATION") Under paragraph (cc) of the definition of “the business of a bank” in section 1(1) of the Banks Act, 1990 (Act No. 94 of 1990), I, René Van Wyk, Registrar of Banks, hereby designate, with the approval of the Minister of Finance, subject to the conditions set out in paragraph 4 of the
Schedule, an institution specified in paragraph 2 of the Schedule as an institution whose activities
set out in paragraph 3 do not fall within the meaning of “the business of a bank”. René van Wyk Registrar of Banks Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998

This gazette is also available free online at www.gpwonline.co.za 82  No. 39411 GOVERNMENT GAZETTE, 13 NOVEMBER 2015 2
SCHEDULE

1. Definitions
   In this Schedule, "the Banks Act" means the Banks Act, 1990 (Act No. 94 of 1990) and any word or expression to which a meaning has been assigned in the Banks Act or the Regulations relating to Banks shall bear the meaning so assigned thereto and, unless the context otherwise indicates. "International Finance Corporation" means the international corporation established –
   1.1 in terms of its Articles of Agreement (“Articles”);
   1.2 for the purpose of furthering economic development by encouraging the growth of productive
   private enterprise in its member countries, particularly in less developed areas;
   1.3 to supplement the activities of the International Bank for Reconstruction and Development;
   1.4 of which the Republic of South Africa (“RSA”) is a member and which is recognised by the RSA
   in terms of section 3(4) of the Diplomatic Immunities and Privileges Act, 1989 (Act No. 74 of 1989);
   1.5 with its headquarters in Washington DC, United States of America.
2. Institution
   International Finance Corporation
3. Designated activities
   3.1 The International Finance Corporation may in pursuance of its purpose –
   3.1.1 in association with private investors, assist in financing the establishment, improvement and
   expansion of productive private enterprises which would contribute to the development of its member countries by making investments, without guarantee of repayment by the member government concerned, in cases where sufficient private capital is not available on reasonable terms;
   3.1.2 seek to bring together investment opportunities, domestic and foreign private capital, and
   experienced management; and
   3.1.3 seek to stimulate, and to help create conditions conducive to, the flow of private capital,
   domestic and foreign, into productive investment in member countries.
   3.2 In so far as the pursuance by the International Finance Corporation involves the issuance of
   securities on the financial markets in the RSA and/or the offering of debt securities to institutional investors in the RSA, such issuance may, subject to the conditions set in paragraph 4, not be in compliance with the conditions as stipulated in Government Notice No.217, published in Government Gazette No. 16167 dated 14 December 1994 (“Commercial Paper Notice”).
4. Conditions
   4.1 The International Finance Corporation shall not otherwise than in terms of its Articles and this
   notice solicit or take "deposits" from the general public in the RSA.
   4.2 All bonds or securities issued by the International Finance Corporation shall be issued from a
   regulated platform in the RSA such as the JSE Securities Exchange: Provided that before making a public sale of its obligations on the markets in the RSA the International Finance Corporation shall obtain the prior written approval of the Registrar of Banks and of its member in whose currency the obligations are to be denominated.
   4.3 The International Finance Corporation shall issue debt securities only to institutional investors in
   the Republic of South Africa.
   4.4 The International Finance Corporation shall be classified as a foreign issuer, although the issue
   shall be South African Rand denominated.
   4.5 This notice shall expire forthwith and be of no force and effect on the date of any material
   change in the legal status of the International Finance Corporation as reflected in its definition herein. Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998

This gazette is also available free online at www.gpwonline.co.za STAATSKOERANT, 13 NOVEMBER 2015 No. 39411 83 3
4.6 The International Finance Corporation shall, in accordance with its ordinary disclosure
standards, comprehensively disclose the required information in a placing document or prospectus relating to the issue of bonds or securities.
4.7 Any other or further conditions that the South African Reserve Bank may impose from time to
time.
Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998