Standard Bank has received a R16-billion boost to its capital base after completion of a deal in which China’s biggest lender ICBC took a 20% stake, it said on Monday.
International and Commercial Bank of China, the world’s biggest lender by assets, said in October last year it would pay $5,5-billion for the stake in Standard Bank.
The cash settlement of the transaction and the issue of news shares took place on Monday.
Standard Bank said the cash injection strengthened its Tier One 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 $1-billion global resource fund in which each will invest $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% down at R94,50 by 9.09am GMT, in line with a 4,43% weaker JSE Securities Exchange bank sector. – Reuters