South Africa's African Bank postpones $300 million note offering

By Christine Van Dusen

Atlanta, Feb. 8 - South Africa's African Bank Ltd. has postponed a $300 million offering of seven-year notes in light of a regulatory investigation, a market source said.

The Johannesburg-based lender could face a fine worth $34 million for an alleged "reckless lending allegation," the company said in a statement. "Given that this was an isolated incident as a result of fraudulent activities and the organization has suffered a consequential financial loss, African Bank believes the fine is unwarranted."

Credit Suisse, Goldman Sachs, Rand Merchant Bank and Standard Chartered Bank were the bookrunners for the Regulation S-only deal.

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