Standard Bank sole advisor and bookrunner to Copperbelt Energy Corp. in raising $70 million in funding via Zambian rights offer

Johannesburg 26 March:  Standard Bank, trading as Stanbic Bank Zambia, advised Copperbelt Energy Corporation Plc. (CEC) on the structuring of a 387.5 million kwacha (USD70 million) capital raise through a rights offer process. The success of the transaction will enable the company to expand its power and energy solutions across Zambia and the rest of Africa.

Emergency power supply: A 20MW Gas Turbine Powered Alternator at 220/66kV Luano Substation used for emergency power supply

The transaction is the second-largest equity raising ever conducted in Zambia and highlights Standard Bank’s ability to use its on-the-ground presence and investment banking expertise across the 20 African countries in which it operates. Standard Bank 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 Mr 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.

Michael Tarney, Managing Director for Corporate Development at CEC commented, “We are delighted that 96% of CEC Plc’s existing shareholders chose to exercise their rights, providing additional equity to CEC Plc. 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.  The Lusaka Stock Exchange has facilitated the first rights offer for CEC Plc since the Initial Public Offering (IPO) in 2008.  The success recorded provides inspiration to CEC Plc to continue on its growth trajectory, with the likelihood of further rights offers in future years to raise additional capital.”

CEC’s transmission and distribution network consists of over 1,000 kilometres of overhead lines and 41 high voltage substations with a current carrying capacity of 700MW. The company’s current market capitalisation is equivalent to USD188million. 

Notes to Editors: 

About Standard Bank South Africa

Standard Bank South Africa is the largest operating entity of Standard Bank Group, Africa’s largest bank by assets. Standard Bank Group had total assets of R1 694 billion (about USD162 billion) at 31 December 2013, while its market capitalisation was R209.4 billion (about USD20 billion).

In South Africa, Standard Bank provides the full spectrum of financial services. It’s Corporate and Investment Banking division serves a wide range of requirements for banking, finance, trading, investment, risk management and advisory services. Corporate and Investment Banking division delivers this comprehensive range of products and services relating to: investment banking; global markets; and global transactional products and services.

Standard Bank’s corporate and investment banking expertise is focused on industry sectors that are most relevant to emerging markets. It has strong offerings in mining and metals; oil, gas and renewables; power and infrastructure; agribusiness; telecommunications and media; and financial institutions.

Standard Bank’s personal and business banking unit offers banking and other financial services to individuals and small-to-medium enterprises. Standard Bank has more than 720 branches and over 7 100 ATMs in South Africa. Independent surveys of customer satisfaction consistently place Standard Bank at or near the top of their rankings.

Standard Bank’s personal and business banking products include mortgage lending, instalment sale and finance leases, card products, transaction and lending products, and bancassurance.

For further information go to www.standardbank.co.za 

About CEC

The Copperbelt Energy Corporation PLC (CEC) is an independent power generation, transmission and distribution company, with interests in closely linked businesses in Zambia and the African region, including optic fibre based telecommunications. A member of the Southern African Power Pool and listed on the Lusaka Stock Exchange, CEC has a deep insight into the mining industry, enabling it to provide quality electricity and other power products and services to the majority of the mines in Zambia for over 50 years. CEC is well positioned as a developer of energy infrastructure in Africa and is respected in the region for its skills in designing and operating transmission systems.

The Company owns and operates over 1,000 kilometres of high voltage transmission lines and 41 substations covering all towns in Zambia’s mineral-rich region of the Copperbelt, and owns the Zambian portion of the electricity interconnector with the Democratic Republic of Congo, which enables transportation of power within the Southern African region. CEC accounts for over 50% of Zambia’s power consumption.

CEC Africa Investments Limited – a pan-African Power Developer

A subsidiary of CEC Plc, CEC Africa is an investments holding company established to develop, finance and operate power infrastructure projects across sub-Saharan Africa.  A pan-African power assets developer, CEC Africa provides access to an African power platform with attractive assets across sub-Saharan Africa and has a strong pipeline of both green field and brown field power projects in development across Africa. Riding on the opportunity presented by Africa’s significant infrastructure deficit and growing investment interest for infrastructure in Africa, CEC Africa offers an attractive investment vehicle in Africa’s energy infrastructure sector.

Please visit www.cecinvestor.com for more information. You can follow us on Facebook at www.facebook.com/cecinvestor and on Twitter @cecinvestor. 

FOR MORE INFORMATION CONTACT: 

 

Copperbelt Energy Corporation:	Standard Bank:
Chama Nsabika-Kalima – Senior Manager Corporate Communication Mobile: +260 966 792 922 Email:[email protected]	Ross Linstrom Standard Bank Media Relations Email:  [email protected] Mobile:  083 262 1882 OR Hayley Crane Standard Bank Media Relations E Mail: [email protected] Mobile: +27 (0)83 795 7422