African Bank Investments Limited (ABIL) has completed a rights offer, which was opened on 18 November 2013 and raised ZAR5.482bn from ABIL’s shareholders.
The transaction was oversubscribed by 64 per cent and was fully underwritten by Goldman Sachs International (GSI).
This transaction is one of the biggest African cross-border equity capital markets transactions this calendar year and one of the largest rights offerings by a financial institution in South Africa.
Leon Kirkinis, chief executive of ABIL says: “We are delighted with the successful completion of this rights issue. The significant oversubscription of 64 per cent demonstrates strong confidence and commitment by our shareholders. The proceeds of the issue will strengthen the bank’s capital base and support our business growth prospects.”
Law firm Reed Smith advised ABIL on New York and English law, as well as on German, Hong Kong and UAE securities law issues. South African law firm Prinsloo, Tindle & Andropoulos advised ABIL on South African law. Norton Rose Fulbright, in both the UK and South Africa, advised GSI as underwriter.
Tamara Box, partner at Reed Smith, says: “We were delighted to have worked with the ABIL team on this landmark transaction in the South African market. We are enormously encouraged by the oversubscription of shares and the positive sentiment it conveys about the primary markets in general.”