Stanchart launches second Rights Issue

By James Anyanzwa

Standard Chartered Bank Kenya (SCBK) launched its second Rights Issue to raise Sh3.2 billion in additional capital.

The offer price for the issue, which opens on October 9, has been set at Sh145 per share. 

Standard Chartered Bank PLC, which owns 74 per cent of the Kenyan subsidiary, is expected to take up its full rights with about Sh832 million expected from the remaining retail, institutional and international investors.

“Our shareholders have been very supportive in our strategic plans and other similar transactions as the one we are currently undertaking,” said SCBK Board Chairman, Wilfred Kiboro.

“Our 2010, Right Issue was hugely oversubscribed as a sign of confidence and faith in our strategic direction in the bank shown by our shareholders to date. We are confident that this year’s Right Issue will be equally successful.”

Mr Kiboro was speaking during the official launch of the bank’s rights issue in Nairobi on Tuesday.

Sound position

The bank’s Chief Executive Richard Etemesi said the proceeds of the issue, which closes on October 26, would be used to support the bank’s growth strategy as well as ensure that the Bank is in a sound position to meet any impending regulatory changes that may include increases in banks statutory capital requirements.

“The Rights issue safeguards our ability to pursue the attractive opportunities we see for growth, like the increasing demand for loans and advances, while also strengthening our capital ratios. We believe this approach will create clear long-term value for our shareholders, and underpin the financial strength of the Bank,” said Etemesi.