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ABL/ ABLP - African Bank Investments Limited - Proposed placing and issue of a tranche of 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 A TRANCHE OF PREFERENCE SHARES Introduction Shareholders are referred to ABIL`s announcement of 21 February 2011 and are advised that ABIL is considering issuing a tranche of variable-rate, perpetual, non-cumulative, non-participating preference shares to investors for cash by way of a private placement. The shares will rank on a pari passu basis with ABIL`s 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 investors will be invited to participate in the proposed issue. Interested investors are requested to contact the bookbuilders for information on the placement process. The issue of preference shares will be subject to the following limitations: - Selected investors may not be persons considered to be non-public shareholders or related parties to the Company in terms of the JSE Limited Listings Requirements. - The minimum subscription amount per principal institutional investor will be R100 000. - The minimum subscription amount per principal non-institutional investor will be R1 000 000. The issue of preference shares will be subject to and conditional upon the final approval by ABIL of the terms of any such issue of preference shares and the approval of the listing of such preference shares by the JSE. Pricing and additional information The new tranche of preference shares will be priced at a clean price of 7916 cents per preference share, which results in an effective yield of 87.2% of prime. In accordance with the circular issued to shareholders on 4 March 2011 this price is calculated with reference to the clean 10 day volume weighted average traded price as at the close of business on Wednesday 29th June 2011, and represents a discount of 3.82% thereon. Further details of the issue and related information is available in a presentation on ABIL`s website at http://africanbank.investoreports.com/investor-relations/funding/ preference-shares/. The offer period begins on the 15th July 2011 and closes on the 19 July 2011, and allotment and settlement will take place on Tuesday, 26 July 2011. After including accrued dividends the issue price for settlement on 26th July 2011 will be 7975 cents. Enquiries may be directed to: ABIL Steven Kahanovitz Executive: Corporate Finance (011) 564 6709 Gavin Jones Executive: Capital and Liability management (011) 564 6868 ABSA Capital Keith Flemmer Distribution 011 895 5382 Investec Capital Markets Kenric Owen Product and Distribution 011 286 9930 Midrand 1 July 2011 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Transaction Sponsors Absa Capital (the investment banking division of Absa Bank Limited and affiliated with Barclays Capital) Investec Capital Markets (a division of Investec Bank Limited) Issuer CSDP Absa Capital Investor Services Debbie Billings Corporate Actions 011 350 1580 Date: 01/07/2011 07:05:11 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
