Stanbic taps bond market for P200m
Staff Writer | Friday June 23, 2017 14:33
In the first tranche, the bank seeks to raise P140 million through a subordinated unsecured floating rate note, maturing on the June 15, 2027 while the second tranche involves P 60 million.
“The Botswana Stock Exchange has approved the listing of the two tranches of notes on the bourse as of 15th June 2017,” the bank said.
“The tranches of notes issued as above are being offered to institutional investors by way of private placement. These notes are not being offered to the public.”
Stanbic Bank says it will use the proceeds of the offer to fund loans and advances to customers and for the general corporate business purposes, including liquidity and capital management.
The latest notes offered are part of a P2 billion-bond programme issued by the bank in 2008.
Stanbic Botswana’s asset base has grown significantly from P138 million in 1998 to P12 billion as at December 2016 and in the same period the bank has consistently made profits with its net income after tax increasing from P2.2 million in 1993 to P192 million in 2016.
The bank is regarded as one of the systematically important domestic banks operating in the country with a 15% market share of total banking industry assets and deposits.
Stanbic is now ranked fourth amongst the 10 commercial banks operating in the country in terms of staffing, branch network, capital and deposit liabilities.