Significant recapitalization by Standard Chartered Bank Botswana
The uncertain business environment has meant that the bank needs to create a buffer against any impairments. This has led the bank to announce this huge recapitalization strategy to overcome and withstand any market shocks. The Botswana Stock Exchange (BSE) listed bank which registered losses last year due to tough trading environment explained the capital […]
The uncertain business environment has meant that the bank needs to create a buffer against any impairments. This has led the bank to announce this huge recapitalization strategy to overcome and withstand any market shocks.
The Botswana Stock Exchange (BSE) listed bank which registered losses last year due to tough trading environment explained the capital will be raised by way of an issuance of Undated Unsecured Non Cumulative Subordinated Capital Securities to its parent company Standard Chartered Bank (SCB), which is incorporated in England.
As of January 31st 2018 Standard Chartered Bank Global held 0.831% of the issued ordinary shares of SCBB. The Group outfit is also a holding company of Standard Chartered Holdings (Africa), the latter, as at the last practicable date 31th January 2018 held 74.156% of the issued ordinary shares of Stan Chart Botswana. The terms of the Capital Securities will be documented by way of an agreement between SCB and SCBB.
According to the statement As at 31 January 2018, SCBB had BWP 247.26 million of Tier 2 Capital in issue in the form of subordinated notes issued under the Company’s P500million Debt Issuance Programme and as well as subordinated debt in the total sum of BWP 389 million owing to SCB-StanChart Global.
“In order to continue to meet the minimum capital requirements of Bank of Botswana, and to create a cushion against unexpected impairments caused by a difficult business environment SCBB intends to issue the Capital Securities in the total amount of BWP 400 million, which will comprise Additional Tier 1 Capital for the Bank, to SCB and utilize part of that capital to retire the BWP 247.26 million of Tier 2 Capital by exercise of SCBB’s right of redemption,” explained the statement…
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