| Tue 3 Nov 2009, 13:27 | | ABL/ABLP - African Bank Investments Limited - African Bank Limited Raises R150 |
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ABL ABLP
ABL
ABL/ABLP - African Bank Investments Limited - African Bank Limited Raises R150
Million, Subordinated Tier II Capital From Deutsche Investitions - Und
Entwicklungsgelsellschaft MBH
African Bank Investments Limited
(Registration Number 1946/021193/06)
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
Ordinary Share Code: ABL ISIN: ZAE000030060
Preference Share Code: ABLP ISIN: ZAE000065215
AFRICAN BANK LIMITED ("AFRICAN BANK") RAISES R150 MILLION, SUBORDINATED TIER
II CAPITAL FROM DEUTSCHE INVESTITIONS - UND ENTWICKLUNGSGELSELLSCHAFT MBH
("DEG")
African Bank, a wholly-owned subsidiary of African Bank Investments Limited,
is pleased to announce that it has raised a R150 million subordinated Tier II
capital qualifying loan from DEG.
DEG is a German development finance institution and a member of the KfW
Bankengruppe. As one of Europe`s largest development finance institutions, it
promotes private business structures to contribute to sustainable economic
growth and improved living conditions.
The subordinated debt instrument has a 7 year term which, after being fully
hedged via a cross currency swap, is priced at 3mth JIBAR plus 538bps. In
line with its risk management strategy, African Bank has also hedged this
JIBAR floating rate exposure, via an interest rate swap, resulting in an
effective 14.46% nominal annual compounded quarterly (nacq) fixed rate for the
duration of the loan.
African Bank provides its customers in the predominantly low to middle-income
market with unsecured credit, approximately 50% of which is typically applied
towards incremental housing and education related purposes. As such, DEG`s
loan will facilitate broader access for African Bank`s clients for these
important markets.
Michael Fischer, Head of the DEG Representative Office in Johannesburg, said
"Even during these difficult times in world financial markets, DEG is
convinced that solid banks will continue to provide loans to their customers.
This is especially important for the low to middle income market in South
Africa, an area where African Bank is the dominant player."
David Woollam, African Bank managing director, said "This transaction is the
third debt investment by development finance institutions into African Bank,
bringing the total of such funding to R600 million. It is an extension of
African Bank`s capital management and funding programme, which aims to
optimise the weighted average cost of capital of the Bank to the benefit of
our clients, and widen our universe of funders".
For further information please contact Gavin Jones on (011) 564 6868.
Midrand
3 November 2009
Advisors and arrangers
Nedbank Capital (A division of Nedbank Limited)
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 03/11/2009 13:27:01 Produced by the JSE SENS Department.
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