The deal due to be signed between Standard Bank and the Industrial and Commercial Bank of China (ICBC) is expected to make it possible for the South African bank to increases its distribution capacity and free up more capital for investments in Africa, said the chief executive of Standard Bank Angola.
Through the deal Standard Bank, Africa’s largest bank, is selling 60 percent of its UK subsidiary – Standard Bank Plc – to ICBC for US$765 million. The UK subsidiary is the arm of the Standard Bank for capital markets transactions and the group’s other international operations.
The ICBC signed an option to buy a further 20 percent of Standard Bank Plc, which it can exercise two years after the initial deal is concluded.
Pedro Pinto Coelho, the chief executive of Standard Bank de Angola, believes that his bank now has “a stronger distribution capacity for Angolan risk on international markets.” Which he believes “is very important as Angola has plans to issue Euro-bonds in the third quarter of the year and because other Angolan are also expected to access the international market.” (macauhub)