Nedbank Backs Ndala JIBAR to ZARONIA Note Update

In Short

• Nedbank Corporate and Investment Banking is sponsoring a proposed documentation change for Ndala Investments.
• The change would move interest pricing from JIBAR to compounded daily ZARONIA.
• Noteholder responses are due by 2 October 2026.

What Happened

Nedbank Corporate and Investment Banking acted as debt sponsor for Ndala Investments’ proposed amendment of its Series Transaction 9, Class A note and loan-facility documents. The main change is a switch from JIBAR to compounded daily ZARONIA as the reference rate used to calculate interest.

JIBAR is the Johannesburg Interbank Agreed Rate, a benchmark rate used in South African floating-rate debt. ZARONIA is the South African rand overnight index average, which tracks actual overnight funding rates, similar to using a daily “spot” rate rather than a quoted term rate.

The proposal is tied to the planned discontinuation of JIBAR after 31 December 2026. If JIBAR is no longer published, contracts that still reference it can face uncertainty over how interest should be calculated. Moving now aims to reduce that risk.

Under the proposal, interest would be based on compounded daily ZARONIA, which means each day’s overnight rate is applied and compounded over the interest period. This approach is now common in markets that have replaced older interbank benchmarks.

Noteholders have been asked to review the amendment and provide responses by 2 October 2026.

Why It Matters

The JIBAR to ZARONIA switch is part of a wider benchmark transition that affects banks, issuers, asset managers, and fintechs building pricing, treasury, and risk systems.

For issuers and lenders, updating legacy note and loan documentation early can prevent pricing disputes and operational breaks after the JIBAR sunset date. For investors, the change can affect how interest accrues and how returns compare across instruments, even if the margin stays the same.

It also increases the need for clean reference-rate data and correct compounding logic in back-office systems, because overnight compounding is more calculation-heavy than a single term-rate fix.