Investec plans placement of preference shares at ZAR 83.33 each

Investec Capital Markets to arrange deal; bank approval required

By Jennifer Chiou

New York, March 30 - Investec Ltd. said it intends to issue a tranche of its preference shares to investors in a private placement upon South African Reserve Bank approval.

The new tranche will be offered at ZAR 83.33 apiece, which results in an effective yield of 84% of prime. This price was calculated using the 10-day volume-weighted average price of the securities at the close on March 20.

The offering price represents a 5% discount.

The preferreds will rank equally with the company's existing non-redeemable, non-cumulative and non-participating preferreds.

The offer period is anticipated to open on April 16 and close two days later. Settlement is earmarked for April 25.

After including accrued dividends, the issue price for settlement will be ZAR 87.71 per share.

Proceeds will be used to raise capital to pursue growth opportunities, according to a news release.

Investec Capital Markets is arranger and bookrunner.

Investec, based in Johannesburg, provides a wide range of financial products in South Africa.

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