By Susanna Moon
Chicago, March 19 - African Bank Investments Ltd. said it issued ZAR 426,020,873.94 of variable-rate perpetual non-cumulative non-participating preference shares after a joint bookbuilding process.
African Bank sold 5,480,778 preference shares at ZAR 77.73 each, including accrued dividends, according to a press release.
African Bank announced the private placement on March 9. The bank said that the new tranche of preference shares was to be offered at a clean price of ZAR 76.14 per preference share, with an effective yield of 90.63% of Prime. This price was calculated using the clean 10-day volume-weighted average price of the preference shares as at the close of business on March 8 and represents a 5% discount.
The offer period opened on March 12 and closed on March 16. Settlement will occur on Friday.
The placement was conducted by ABSA Capital, a division of ABSA Bank Ltd., and Investec Capital Markets, a division of Investec Bank Ltd.
The minimum subscription amount per principal institutional investor is ZAR 100,000, and the minimum subscription amount per principal non-institutional investor is ZAR 1 million.
The net capital raised through the issue of preference shares will be applied toward the subscription of shares in wholly owned subsidiary African Bank Ltd.
A shareholder meeting will be held March 30.
African Bank is a Johannesburg-based lender.
| Issuer: | African Bank Investments Ltd.
|
| Issue: | Variable-rate perpetual non-cumulative non-participating preference shares
|
| Amount: | ZAR 426,020,873.94
|
| Shares: | 5,480,778
|
| Price: | ZAR 77.73
|
| Underwriters: | ABSA Capital and Investec Capital Markets
|
| Pricing date: | March 19
|
| Settlement date: | March 23
|
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