ABSP - Absa Bank Limited - Private Placement Of Ab
JSE ABSP
ABSP
ABSP - Absa Bank Limited - Private Placement Of Absa Bank Preference Shares
ABSA BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/004794/06)
ISIN: ZAE000079810
JSE share code: ABSP
(Absa Bank)
ABSA BANK LIMITED - PRIVATE PLACEMENT OF ABSA BANK PREFERENCE SHARES
Investors are referred to:
- the Sens announcement of 20 February 2007 regarding the private placement
of Absa Bank non-cumulative non-redeemable preference shares (the ABSP
preference shares),
- the Sens announcement of 27 February 2007 in connection with the
postponement of the private placement to investigate the potential impact of the
proposed changes to secondary tax on companies (STC) and the introduction of
taxation of dividends (the tax changes) on the ABSP preference shares, and
the announcement of 20 March 2007 regarding the intention of Absa Bank to adjust
the preference share dividend yield and to amend the terms and conditions of the
ABSP preference shares accordingly.
Absa Bank has decided to privately place further ABSP preference shares to
selected investors at an effective yield of 75% of the prime interest rate.
Depending on demand, it is anticipated that between R1 billion and R2 billion
ABSP preference shares will be issued pursuant to this private placement. The
private placement is expected to close on 30 March 2007. The newly issued ABSP
preference shares will rank pari passu with the ABSP preference shares already
in issue.
Application will be made for the listing of the newly issued ABSP preference
shares on the JSE Limited (the JSE) in due course.
Absa Bank has further decided to initiate a monthly ABSP preference share
issuance programme. The programme duration will be from 1 May 2007 to 31
December 2007. The details of the issuance programme are as follows:
- on the first Thursday of every month (or the first business day thereafter
if not a business day), Absa Bank will place further ABSP preference shares, up
to a maximum of R300 million per issue, to selected investors;
- each such placement of further ABSP preference shares will be priced at the
volume-weighted average price of ABSP preference shares on the JSE for the
preceding five trading days, capped at an effective yield of 75% of the prime
interest rate.
Enquiries
Carel Gronum
General manager: Capital Management
Tel: (+2711) 350 8995;
e-mail: carelg@absa.co.za
Issued by:
Jacques Badenhorst
Head: Investor Relations
Absa Group Limited
4th floor, Absa Towers East, 170 Main Street, Johannesburg
Tel: (+2711) 350-4061 Fax: (+2711) 350-6487
E-mail: jacques.badenhorst@absa.co.za
Lead sponsor:
Merrill Lynch South Africa (Proprietary) Limited
Co-sponsor:
Absa Capital, a division of Absa Bank Limited
Johannesburg
20 March 2007
Date: 20/03/2007 16:46:18 Produced by the JSE SENS Department.
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