PTA Bank updates VP Faure on major success |20 November 2010

Its president Dr Michael Gondwe yesterday called on Vice-President Danny Faure, who is its chairman, to formally tell him about the success.

The bond is the first of its kind from an East African issuer and the first Eurobond issue in sub-Saharan Africa since 2007.
It is listed on the Luxembourg Stock Exchange and forms part of a $1 billion Euro Medium Term Note programme, under which bonds will be issued in tranches over the coming years.

The bond was structured and placed on the London market by Standard Bank, the parent company of CFC Stanbic and HSBC, the Hong Kong headquartered bank which is one of the world’s largest.

Dr Gondwe said the rationale for the $1 billion programme is to diversify the bank's resource base and to raise funding to meet the financing requirements of a growing pipeline of small and medium-size enterprises in the Common Market for Eastern and Southern Africa region.

“The international bond issue marks an important milestone in the bank's resource mobilisation programme and is the first step in the implementation of a long-term strategy of engagement with international financial markets to access long-term capital,” he said.

Speaking during the signing of a loan agreement between the bank and the Eden Island Company on Thursday, Dr Gondwe said Mr Faure being chairman of the bank must have contributed to the raising of investors’ confidence.

He said the bond was oversubscribed by 112%, allowing the bank to continue financing projects such as Eden Island.

“With a lot of confidence I therefore repeat my call on those with viable business proposals to talk to us, and I am sure you will find it a refreshing experience to deal with the PTA Bank,” he said.

“This exciting development has taken place under the watch and guidance of VP Danny Faure, who has given us great support in concluding this historic event.”