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ABL/ABLP/ BIABL - 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") African Bank Limited (Incorporated in the Republic of South Africa) (Registration No. 1975/002526/06) Company code: BIABL PROPOSED PLACING AND ISSUE OF A TRANCHE OF PREFERENCE SHARES Introduction Shareholders are referred to ABIL`s announcement of 27 February 2012 and are advised that further to this, ABIL has decided to proceed with issuing a further 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, and will form the same class of shares as, ABIL`s existing listed preference shares resulting in the same preference dividend cycle as currently applies. ABIL wishes to raise cost effective permanent share capital as part of a general capital management programme. It is intended that the net 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 in accordance with the specific authority granted by shareholders to ABIL at the general meeting held on 30 March 2011 and 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; and * 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 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 offered at a clean price of 7614 cents per preference share, which results in an effective yield of 90.63% of prime. In accordance with the specific authority referred to above, this price is calculated with reference to the clean 10 day volume weighted average traded price of the preference shares as at the close of business on 8 March 2012, and represents a discount of 5% thereon. The offer period opens on Monday 12 March 2012 and closes on Friday, 16 March 2012 at 17:00, and allotment and settlement will take place on Monday 19th March 2012 and Friday, 23 March 2012 respectively. After including accrued dividends the issue price for settlement on 23 March will be 7773 cents. Enquiries may be directed to: ABIL Markus Borner Executive: Balance Sheet Management (011) 564 7495 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 9 March 2012 Transaction Sponsor Absa Capital (the investment banking division of Absa Bank Limited and affiliated with Barclays Capital) Issuer CSDP Absa Capital Investor Services Debbie Billings/Nicole Andrews Corporate Actions 011 350 1580/7671 Date: 09/03/2012 15:19:01 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.
