ABL - African Bank Investments Limited - Proposed placing and issue of up to 15

ABL - African Bank Investments Limited - Proposed placing and issue of up to 15 
000 000 preference shares                                                       
AFRICAN BANK INVESTMENTS LIMITED                                                
(Incorporated in the Republic of South Africa)                                  
(Registered bank controlling company)                                           
(Registration number 1946/021193/06)                                            
Ordinary share code: ABL ISIN: ZAE000030060                                     
Preference share code: ABLP ISIN: ZAE000065215                                  
("ABIL" or "the Company")                                                       
PROPOSED PLACING AND ISSUE OF UP TO 15 000 000 PREFERENCE SHARES                
Introduction                                                                    
Shareholders are advised that ABIL is considering issuing up to 15 000 000      
preference shares to selected investors for cash by way of a private placement. 
The shares will rank on a pari passu basis with its existing listed preference  
shares.                                                                         
ABIL wishes to raise cost effective permanent share capital as part of a general
capital management programme.  It is intended that capital raised through the   
issue of preference shares will be applied towards the subscription by ABIL of  
ordinary shares in its wholly owned subsidiary, African Bank Limited.           
Placing of the preference shares                                                
Placements of preference shares will be made by ABSA Capital (a division of ABSA
Bank Limited) and Investec Capital Markets (a division of Investec Bank Limited)
through a joint bookbuilding process, in terms of which selected investors will 
be invited to participate in the proposed issue.  The issue of preference shares
will be conditional upon the fulfilment of the conditions precedent referred to 
below.                                                                          
- Selected investors may not be non-public shareholders or related parties to   
the Company in terms of the JSE Limited Listings Requirements.                  
- The minimum subscription amount per principal investor will be R100 000.      
Conditions precedent                                                            
The issue of any preference shares to investors following the successful        
completion of the bookbuilding and placement process will be conditional upon   
the fulfilment of the following conditions precedent:                           
- the approval by ABIL shareholders of the requisite resolutions to issue the   
preference shares;                                                              
- the approval by the board of directors of ABIL of the terms of the issue of   
the preference shares;                                                          
- the approval of the listing of the preference shares to be issued by the JSE  
Limited;  and                                                                   
- the requisite approval of the Registrar of Banks.                             
Circular                                                                        
Further announcements and a circular containing the details of the specific     
issue of any preference shares for cash will be issued to shareholders in due   
course.                                                                         
Enquiries may be directed to:                                                   
ABIL                                                                            
Nithia Nalliah                                                                  
Financial director                                                              
(011) 256 9255                                                                  
Gavin Jones                                                                     
Executive Capital and Liability management                                      
(011) 564 6868                                                                  
ABSA Capital                                                                    
Prasanna Nana                                                                   
Head Debt Capital Markets                                                       
011 895 6927                                                                    
Investec Capital Markets                                                        
Kenric Owen                                                                     
Product and Distribution                                                        
011 286 9930                                                                    
Midrand                                                                         
21 February 2011                                                                
Sponsor                                                                         
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 21/02/2011 17:37:05 Supplied by www.sharenet.co.za                     
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