African Bank to go ahead with private placement of preference shares

By Susanna Moon

Chicago, March 9 - African Bank Investments Ltd. said it decided to proceed with another tranche of variable-rate perpetual non-cumulative non-participating preference shares by way of a private placement.

The new tranche of preference shares will be offered at a clean price of 7,614 cents per preference share, which results in an effective yield of 90.63% of Prime. This price was calculated using the clean 10-day volume-weighted average traded price of the preference shares as at the close of business on March 8, and represents a discount of 5%.

The offer period opens on March 12 and closes on March 16. Allotment and settlement will take place on March 19 and March 23, respectively.

The total settlement price will be 7,773 cents, including accrued dividends.

Placements of preference shares will be made by ABSA Capital, a division of ABSA Bank Ltd., and Investec Capital Markets, a division of Investec Bank Ltd., through a joint bookbuilding process, according to a company press release.

The minimum subscription amount per principal institutional investor will be 100,000 rand, and the minimum subscription amount per principal non-institutional investor will be 1 million rand.

A shareholder meeting will be held March 30.

The net capital raised through the issue of preference shares will be applied toward the subscription of shares in its wholly owned subsidiary African Bank Ltd.

African Bank is a Johannesburg-based lender.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.