Standard Bank Assists US$70m Rights Offer by Zambian Energy Group
Africa’s Standard Bank, trading as Stanbic Bank Zambia, has advised Copperbelt Energy Corporation (CEC) on the structuring of a 387.5m Zambian kwacha (ZMW) capital raise – equivalent to US$70m – through a rights offer process.
The transaction is the second-largest equity raising ever conducted in Zambia and its completion will enable the company to expand its power and energy solutions across Zambia and the rest of Africa.
Standard Bank added that it has a long-standing relationship with CEC, Zambia’s second largest power utility, which goes back to the utility’s initial listing on the Lusaka Stock Exchange in 2008.
“There are not a lot of corporates tapping the capital markets in Zambia so this is a fairly unique transaction as well as a sign of the increasing faith that investors have in Africa’s rapidly developing equity markets,” said Mesh Pillay, head of equity capital markets for sub-Saharan Africa at Standard Bank.
“The funds raised in this transaction will go a long way towards supporting CEC’s growth initiatives across Africa as well as bringing power to new areas of the continent.”
CEC plans to use part of the rights offer proceeds to re-finance its balance sheet and to fund the development of transmission infrastructure, hydro generation and renewable energy projects.
“We are delighted that 96% of CEC’s existing shareholders chose to exercise their rights, providing additional equity to CEC,” said Michael Tarney, managing director for corporate development at CEC.
“The rights offer proceeds will provide additional capital to support the company’s investments in power generation and telecommunications in Zambia, through the efforts of indigenous people and with the support of local capital markets.”