Investec opts for share placing to buy back debt
SOUTH African and British investment bank Investec said yesterday it had raised £85.5m via the placing of 22m new shares, to fund the repurchase of debt at a discount and improve its tier one capital ratio.
The company said the placing would improve its capital ratio in accordance with the company’s aim of maintaining capital levels significantly above regulatory requirements.
“This offering gives Investec the flexibility to prudently repurchase debt at a discount to par and… the opportunity to deliver long term shareholder value, while preserving a strong tier one capital position,” said chief executive Stephen Koseff.
However, Investec shares fell 3.74 per cent to 392.75p on fears that the placing could dilute earnings.
The 22m shares were issued at 390p each and represent 4.92 per cent of existing ordinary shares.