• South African First Loss After Capital (FLAC) issuance reached approximately R 52 billion through October 2026, exceeding Senior Unsecured redemptions by approximately R 8 billion.
• Demand weakened in September, with auction participation declining as investors struggled to absorb issuance at prevailing pricing.
• Clearing spreads widened by an average of 5 basis points across tenors; subscription cover ratios fell to 1.0–1.1 times.
• Banks face an estimated R 360 billion baseline minimum FLAC requirement over six years, alongside refinancing debt callable or maturing before December 31, 2031.
• Regulatory investment limits threaten to constrain the investor base, raising the risk of higher, less predictable funding costs for banks.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Futuregrowth Asset Management (Pty) Ltd published the original content used to generate this news brief on November 09, 2026, and is solely responsible for the information contained therein.