NEDBANK FIRST TO OFFER NEGOTIABLE CERTIFICATE OF DEPOSITS

MBABANE - In a groundbreaking move, Nedbank Eswatini has announced the launch of its Negotiable Certificate of Deposit (NCD) product.
This makes Nedbank Eswatini the first bank to offer this innovative financial instrument in the country. This new product is set to stimulate activity within the Eswatini market and provide more robust investment avenues for clients who wish to invest locally. An NCD is a tradable certificate of deposit issued by a bank. Unlike traditional certificates of deposit, the holder of an NCD can sell it back to the issuing bank or any counterparty before its maturity date. This feature provides investors with greater flexibility and liquidity.

Benefits of NCDs:
High Yields: NCDs offer relatively high yields compared to other investment options.
Liquidity: Investors have the option to sell the NCD before maturity if they need access to their funds.

Development

Transparent Pricing: Nedbank Eswatini publishes two-way pricing daily, showing clients the buying and selling rates for NCDs. However, it is important to note that the minimum investment amount for NCDs is E10 million. Fikile Nkosi, Managing Director of Nedbank Eswatini, expressed excitement about the new product, stating, “This is an exciting development for Eswatini’s financial markets as it provides a unique solution to investors. This is aligned with Nedbank’s purpose of being money experts who do well.”
The introduction of the NCD product, according to Nkosi, marks a significant milestone in the country’s financial sector, offering investors new opportunities to grow their wealth while contributing to the local economy.

Documentation

In terms of requirements, one must be a Nedbank client who has updated their mandatory Know Your Client (KYC) documentation with the bank to access the product. For more information about the NCD product, interested parties can contact the Nedbank Treasury team by sending an email to TreasuryEswatini@nedbank.co.sz or call +268 3278 1145/1325.

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