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19.03.2008 Business & Finance

Stanbic Receives $5.5bn Equity Investment

By Daily Guide

The Standard Bank Group of which Stanbic Bank Ghana is a member, has boosted its capital base following the finalisation of its strategic partnership with the Industrial and Commercial Bank of China Limited (ICBC), the world's largest bank with regard to market capitalisation.

“I am delighted that we have completed our strategic deal. We welcome ICBC as a 20 percent shareholder of Standard Bank.

“The partnership has given us access to capital which will enable us to continue growing and expanding in South Africa, Africa and internationally,” Standard Bank Group Chief Executive, Jacko Maree said in a statement.

This week saw the cash settlement of the deal and the issue of new shares. ICBC has acquired 11.11percent of the current issued share capital of Standard Bank Group from Standard Bank shareholders at a price per share of R136.00.

Standard Bank in turn issued new shares, representing 11.11percent of its share capital, which ICBC acquired at a price per share of R104.58.

The cash injection further strengthens Standard Bank's tier 1 capital position, especially given the current volatility and uncertainty in world markets.

Standard Bank is now well positioned to serve as a gateway to the growing trade and investment flows between China and Africa.

China is Africa's third largest trading partner with trade between the two regions expected to increase to well over USD100 billion by 2010.

ICBC has more than 180 million personal banking customers and 2.5 million corporate banking customers. It has over 16,000 branches and outlets in the People's Republic of China and nearly 100 branches in the rest of the world.

By Felix Dela Klutse

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