ABSP - Absa Bank Limited - Private Placement of Pr
JSE ABSP
ABSP
ABSP - Absa Bank Limited - Private Placement of Preference Shares
Absa Bank Limited
Incorporated in the Republic of South Africa
Registration number: 1986/004794/06
JSE Share code: ABSP
ISIN: ZAE000079810
("Absa Bank")
PRIVATE PLACEMENT OF PREFERENCE SHARES
Absa Bank maintains appropriate levels of capital consistent with the risk
profile of business undertaken, anticipated growth in risk-weighted assets
and possible acquisitions. Non-redeemable, non-cumulative preference
shares form an integral part of the bank`s capital structure; and these
shares are issued to maintain a cost effective tier I capital base.
Accordingly, Absa Bank intends to privately place further preference shares
to selected investors at an effective 74% of prime interest rate. It is
anticipated that (subject to demand) between R1,000 million and R2,000
million of preference shares will be issued pursuant to this placement,
which is expected to close on March 1, 2007. The new Absa Bank preference
shares will rank pari passu with the Absa Bank preference shares already in
issue.
Application will be made to JSE Limited for the new Absa Bank preference
shares to be listed on the "Preference Shares" sector of the JSE lists.
Further details of this issue will be announced in due course.
For further information, please contact:
Carel Gronum, Head: Capital Management
Tel: +27 (0)11 350 8995;
e-mail: carelg@absa.co.za
Jacques Schindehutte, Group Finance Director
Tel: +27 (0)11 350 4850
Email: jacquessc@absa.co.za
Johannesburg
20 February 2007
Lead sponsor: Merrill Lynch South Africa (Pty) Limited
Co-sponsor: Absa Capital, a division of Absa Bank Limited
Date: 20/02/2007 08:14:01 Produced by the JSE SENS Department.
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