South Africa Banks Raise $322 Million in Debut Rescue-Debt Issue

South Africa’s biggest lenders raised $322 million in new loss-absorbing debt to comply with a central bank framework designed to ensure failing financial institutions can be recapitalized without taxpayer bailouts.

Absa Group Ltd. raised 3.2 billion rand ($199 million) through the new instruments that are known as funding for loss-absorbing capacity, or FLAC, notes, the lender said in a statement Friday. They’re linked to Zaronia, the reference rate for short-term financial contracts that the central bank is introducing to replace the Johannesburg interbank average rate by year-end.