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Kenya

StanChart launches Sh3.2b Rights Issue

NAIROBI, Kenya, Oct 20 – Standard Chartered Bank Kenya has launched its second Rights Issue which seeks to raise Sh3.2 billion in additional capital to support its growth strategy.

This will include building the bank’s assets, increasing loans and advances, recruitment of new staff, opening of new branches and refurbishment of current branches among other projects.

The bank’s chairman Wilfred Kiboro said StanChart will offer 22.08 million new shares at Sh 145 each payable in full upon acceptance.

The offer opens on October 9 and closes on October 26.

“The Rights Issue is intended to raise additional capital to enable the bank be in a sound position to meet any impending regulatory changes that may include increases in the bank’s statutory capital requirements,” said Kiboro during the launch.

The rights will be on the basis of one new share for every 13 existing shares held. Kiboro said new shares will be listed and commence trading at the Nairobi Securities Exchange (NSE) on November 27.

“We strongly recommend to all our shareholders to exercise their rights. And with the discount offered, I think we can comfortably say those who are going to take this offer, it will be like having money in the bank,”Kiboro said.

The Rights Issue was approved by the bank’s shareholders in May during the Annual General Meeting and later by the Capital Markets Authority and NSE.

In 2010, the bank offered its first Sh2.5 billion Rights Issue to buy the custody business from Barclays Bank.

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