VBS Mutual Bank Share Price
VBS Mutual Bank Share Price, VBS Mutual Bank’s Board of Directors approved the issuance of Fixed Period shares to the general public. The below sections outline the rules that will govern these Fixed Period Shares.
The definition of Fixed Period shares
As described in paragraph 13 of the Articles of Association, Fixed Period shares are shares that are invested over a fixed period, in this case 5 years/60 months. This means the shares may not be redeemed/withdrawn before the investment period is over.
Who qualifies to apply?
Any natural person who is a South African citizen or a naturalised citizen. Companies and entities or groups, including parents or legal guardians acting on behalf of minors, qualify to buy shares.
How do I apply?
Those who wish to apply for an allocation of Fixed Period Shares must fill in an application form, which can be obtained from VBS Mutual Bank branches or online at www.vbsmutualbank.co.za. Once the form is completed, payment for the requested allocation must be made and proof thereof together with the application, must be returned to VBS Mutual Bank, either in person at any of the VBS Mutual Bank branches or emailed to [email protected] or faxed to 015 516 3541 for the attention of The Manager.
How much does it cost?
Each VBS Mutual Bank share costs R10 and you must apply for a minimum of 1000 shares to participate in the scheme, meaning you have to invest at least R10 000. Your investment will be locked in for five years/60 months.
Minimum amount of shares to be bought
A minimum of 1 000 shares can be bought. i.e. A minimum deposit of R10 000 will be accepted and shares can be bought in increments of R10 000 thereafter.
The interest rate on Fixed Period Shares will be linked to the prevailing South African Prime Lending Rate* as published by the South African Reserve Bank* and subject to change as the South African Prime Lending Rate fluctuates.
Fixed period shareholders will be notified of changes in the South African Prime Lending Rate via sms/e-mail* (if provided/requested) or are to visit their nearest VBS Mutual Bank branch for more information.
1. The interest will be calculated on the nominal value of the shares.
2. Interest will be paid on an annual basis, on the anniversary date, 365 calendar days from date of purchase. If anniversary date falls on a non-business day the modified following rules will apply.
Interest will be paid in the currency of the Republic of South Africa (ZAR). In the case of all issued shares, this interest will be paid by an internal or external electronic transfer.
Period of shares
Shares which shall be paid for in full on application shall be issued for a fixed period of 5 years/60 months.
Redemption of shares
The Shareholder shall not be entitled to demand redemption of, and the Bank shall not be entitled to redeem, a Fixed Period Share before the period of issue has expired or the share has matured, as the case may be. At the end of the term, the shareholder can renew the term of the shares or VBS Mutual Bank can redeem the shares.