ABL/ABLP - African Bank Investments Limited - African Bank Limited Raises R150

ABL/ABLP - African Bank Investments Limited - African Bank Limited Raises R150  
Million, Subordinated Tier II Capital From Deutsche Investitions - Und          
Entwicklungsgelsellschaft MBH                                                   
African Bank Investments Limited                                                
(Registration Number 1946/021193/06)                                            
(Incorporated in the Republic of South Africa)                                  
(Registered bank controlling company)                                           
Ordinary Share Code: ABL     ISIN: ZAE000030060                                 
Preference Share Code: ABLP   ISIN: ZAE000065215                                
AFRICAN BANK LIMITED ("AFRICAN BANK") RAISES R150 MILLION, SUBORDINATED TIER    
II CAPITAL FROM DEUTSCHE INVESTITIONS - UND ENTWICKLUNGSGELSELLSCHAFT MBH       
("DEG")                                                                         
African Bank, a wholly-owned subsidiary of African Bank Investments Limited,    
is pleased to announce that it has raised a R150 million subordinated Tier II   
capital qualifying loan from DEG.                                               
DEG is a German development finance institution and a member of the KfW         
Bankengruppe. As one of Europe`s largest development finance institutions, it   
promotes private business structures to contribute to sustainable economic      
growth and improved living conditions.                                          
The subordinated debt instrument has a 7 year term which, after being fully     
hedged via a cross currency swap, is priced at 3mth JIBAR plus 538bps.  In      
line with its risk management strategy, African Bank has also hedged this       
JIBAR floating rate exposure, via an interest rate swap, resulting in an        
effective 14.46% nominal annual compounded quarterly (nacq) fixed rate for the  
duration of the loan.                                                           
African Bank provides its customers in the predominantly low to middle-income   
market with unsecured credit, approximately 50% of which is typically applied   
towards incremental housing and education related purposes. As such, DEG`s      
loan will facilitate broader access for African Bank`s clients for these        
important markets.                                                              
Michael Fischer, Head of the DEG Representative Office in Johannesburg, said    
"Even during these difficult times in world financial markets, DEG is           
convinced that solid banks will continue to provide loans to their customers.   
This is especially important for the low to middle income market in South       
Africa, an area where African Bank is the dominant player."                     
David Woollam, African Bank managing director, said "This transaction is the    
third debt investment by development finance institutions into African Bank,    
bringing the total of such funding to R600 million. It is an extension of       
African Bank`s capital management and funding programme, which aims to          
optimise the weighted average cost of capital of the Bank to the benefit of     
our clients, and widen our universe of funders".                                
For further information please contact Gavin Jones on (011) 564 6868.           
Midrand                                                                         
3 November 2009                                                                 
Advisors and arrangers                                                          
Nedbank Capital (A division of Nedbank Limited)                                 
Sponsor                                                                         
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 03/11/2009 13:27:01 Supplied by www.sharenet.co.za                     
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