02 October, 2012

Standard Chartered Bank launches Rights Issue

Nairobi 2nd October 2012 Standard Chartered Bank Kenya Limited, a subsidiary of Standard Chartered Bank PLC, today launched its second Rights Issue which seeks to raise Ksh3.2 billion in additional capital, following approvals by the bank’s shareholders, the Capital Markets Authority (CMA) and the Nairobi Stock Exchange (NSE).

The subscription price for the banks Rights Issue, which opens on October 9th, 2012 and closes on October 26, 2012, will be Kshs.145 per ordinary share.

Speaking at the launch, Standard Chartered Bank Kenya Limited Chairman Mr. Wilfred Kiboro said: “Our shareholders have been very supportive in our strategic plans and other similar transactions as the one we are currently undertaking. Our 2010 Right Issue was hugely oversubscribed as a sign of confidence and faith in our strategic direction in the bank shown by our shareholders to date. We are confident that this year’s Right Issue will be equally successful.”

Standard Chartered Bank PLC, which owns 74% of the Kenyan subsidiary, is expected to take up its full rights with about Ksh. 832 million expected from the remaining retail, institutional and international shareholders.

The Bank’s Chief Executive Officer Richard Etemesi said the moneys realised from the Rights Issue will provide additional capital to enable the bank support its strategy as well as ensure that the Bank is in a sound position to meet any impending regulatory changes that may include increases in banks statutory capital requirements.

“The Rights issue safeguards our ability to pursue the attractive opportunities we see for growth like the increasing demand for loans and advances while also strengthening our capital ratios. We believe this approach will create clear long-term value for our shareholders, and underpin the financial strength of the Bank,” said Mr. Etemesi.

Etemesi said that the bank had over the last few years, pursued a focused agenda and continued to deliver consistent good returns to its shareholders against a challenging macro-economic environment.

“As a Bank, we continue to benefit from our deep client relationships, our network and a well-capitalized balance sheet. We set ourselves ambitious performance goals and have consistently delivered against them. We had a record year in 2011 and an even better first half performance in 2012, with record growth in income and revenue,” said Etemesi.

The Bank will offer, by way of rights 22,082,856 new shares at KShs145 each payable in full upon acceptance not later than 3.00 p.m. on 26th October 2012. The Rights Issue will be on the basis of one new share for every thirteen (13) existing shares held by each shareholder. The procedures for acceptance, payment, or renunciation of the Rights are contained in the Information Memorandum which has been mailed to all shareholders.

The New Shares will, when fully paid, rank equally in all respects with the existing shares with regard to voting, dividends, liquidation proceeds and pre-emption in future capital increases.

The Bank’s advisors for the Issue are; Standard Chartered Securities Kenya Limited - Lead Transaction Advisor, Standard Investment Bank - Lead Sponsoring stockbroker, Standard Chartered Bank - receiving bank while Mboya Wangong’u & Waiyaki Advocates are the Legal Advisors.

The reporting Accountant is KPMG and Custody & Registrars Services Limited will act as the Share Registrar. Image Registrars are the Data Processors for the Rights issue, while Hill + Knowlton Strategies and McCann Kenya Advertising will handle the public relations and advertising respectively.

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