BFS - Blue - AIG doesn`t fund Blue`s day to day operations
BFS
BFS
BFS - Blue - AIG doesn`t fund Blue`s day to day operations
BLUE FINANCIAL SERVICES LIMITED
(Registration number 1996/006595/06)
(Incorporated in the Republic of South Africa)
JSE Code: BFS
ISIN: ZAE000083655
("Blue")
AIG DOESN`T FUND BLUE`S DAY TO DAY OPERATIONS
Blue wishes to inform shareholders that the current difficulties experienced by
American International Group (AIG) due to capital market volatility will have no
impact on the Group`s day to day operations.
AIG - an equity investor in Blue Financial Services - invested USD 15 million in
Blue through convertible securities in early 2006. The investment was done
through AIG Capital Partners` Global Emerging Markets II fund. This is a
privately managed fund which is made up of AIG and a number of other investors.
The conversion to equity is scheduled in three tranches, each after Blue`s year-
end in February 2007, 2008 and 2009.
AIG has already provided all three tranches of funding to Blue and earlier this
month indicated their intention to convert their second tranche to equity, which
conversion is underway. Further details regarding this conversion will be
released in due course.
AIG, together with the International Finance Corporation and Emerging Capital
Partners, are equity holders in Blue and does not fund the day to day operations
of the Group. Blue primarily engages with Development Funding Institutes (DFI`s)
for debt funding to sustain the growth in its loan book. DFI`s differ from
private equity funds in that their primary objective is to stimulate development
of emerging markets and very often these institutes - such as the Dutch
Development Bank FMO - will have government guarantees in place.
AIG is currently a 14% shareholder in Blue Financial Services. The largest
shareholders in Blue include the two founder members, IFC and ECP.
Blue will launch its Nigerian operations tomorrow, 17 September 2008 in Lagos.
The newly established entity, Blue Intercontinental Micro Finance Bank (BIMFB),
has been labelled as the most capitalised micro-financier in Nigeria.
Johannesburg
16 September 2008
Designated Adviser
PSG Capital (Pty) Ltd
Date: 16/09/2008 15:04:02 Produced by the JSE SENS Department.
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