African Bank to raise R4bn amid consumer credit concern

By Andrew Griffin
05 Aug 2013

African Bank Investments, South Africa’s biggest unsecured lender, is set to raise up to R4bn ($406m) through a fully-underwritten rights issue, strengthening its balance sheet as concerns grow around the retail lending market.

Goldman Sachs will underwrite the deal.

African Bank, which has a market capitalisation of around R12.5bn, is set to begin meeting with investors about terms from Tuesday. The deal is set to be approved at a shareholder meeting in early September.

After initial weakness in the first half hour ...

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