Standard Bank has US$2b boost as ICBC deal closes

JOHANNESBURG – South Africa’s Standard Bank has received a 16 billion rand boost to its capital base after completion of a deal in which China’s biggest lender ICBC took a 20 per cent stake, it said yesterday.

International and Commercial Bank of China Ltd, the world’s biggest lender by assets, said in October last year it would pay US$5,5 billion for the stake in Standard Bank. The cash settlement of the transaction and the issue of news shares took place yesterday.Standard Bank said the cash injection strengthened its Tier 1 capital position at a time when world markets are volatile and uncertain.The deal will further help to boost Standard Bank’s expansion, Chief Executive Officer Jacko Maree said in a statement.”This transaction will help transform Standard Bank from a regional player to an international player.The positive impact that this partnership will have on the future growth and development of Standard Bank is very exciting.”It has given us access to capital which will enable us to continue growing and expanding in South Africa, Africa and internationally,” Maree said.Standard Bank and ICBC were busy finalising the terms of a one billion dollar global resource fund in which each will invest US$200 million with the remainder made up of third-party funding.”The fund will focus on selected opportunities in Africa and China, specifically on the mining, metals, oil and gas industries.The term of the fund is 10 years,” Standard Bank said in a statement.Shares in Standard Bank were 4,06 per cent down at 94,50 rand by 0909 GMT, in line with a 4,43 per cent weaker JSE Securities Exchange bank sector.Nampa-ReutersThe cash settlement of the transaction and the issue of news shares took place yesterday.Standard Bank said the cash injection strengthened its Tier 1 capital position at a time when world markets are volatile and uncertain.The deal will further help to boost Standard Bank’s expansion, Chief Executive Officer Jacko Maree said in a statement.”This transaction will help transform Standard Bank from a regional player to an international player.The positive impact that this partnership will have on the future growth and development of Standard Bank is very exciting.”It has given us access to capital which will enable us to continue growing and expanding in South Africa, Africa and internationally,” Maree said.Standard Bank and ICBC were busy finalising the terms of a one billion dollar global resource fund in which each will invest US$200 million with the remainder made up of third-party funding.”The fund will focus on selected opportunities in Africa and China, specifically on the mining, metals, oil and gas industries.The term of the fund is 10 years,” Standard Bank said in a statement.Shares in Standard Bank were 4,06 per cent down at 94,50 rand by 0909 GMT, in line with a 4,43 per cent weaker JSE Securities Exchange bank sector.Nampa-Reuters