ABC Banking Corporation reorganizes to consolidate its foundations
Banking Sector
In line with its development strategy and subject to the approval of the relevant authorities, ABC Banking Corporation Ltd will soon reorganize its activities by creating a legal entity that will oversee the banking sector and a new non-banking subsidiary.
Yashodaren Umanee – General Manager, Justice Bernard Sik, Yuen Professeur Donald Ah-Chuen – Managing Director, and Brian Ah-Chuen – Executive Director
Simultaneously, it will issue subordinated bonds, through a public offering, in the amount of Rs 500 million, with the option to issue an additional Rs 200 million.
“After more than a decade of sustained growth, this reorganization illustrates our vision and ambitions as a premium bank. It will allow us to consolidate our foundations, expand our offerings, and move forward with confidence and determination,” explains Brian Ah-Chuen, Executive Director of ABC Banking Corporation.
This reorganization, subject to approval from the bank’s shareholders and regulators, envisions the creation of a new legal entity, namely ABCB Holdings Ltd, which will act as the parent company for both the bank and the future non-banking sector. This organizational structure will enable the banking group to operate with more agility and access new opportunities related to financial services.
Following this reorganization, ABCB Holdings will be listed on the Main Board of the Stock Exchange of Mauritius, replacing the shares of ABC Banking Corporation, which are currently listed on the Development and Enterprise Market (DEM). Thus, ABC Banking’s ordinary shares will be exchanged for new shares in ABCB Holdings Ltd at a ratio of 1:1 – shareholders’ interests will remain unchanged. The board of directors is confident that this exercise will facilitate access to capital for the banking group and increase the visibility of its shares.
With its annual performance as of June 30, 2023, showing profits of around Rs 298 million, ABC Banking Corporation is gearing up for the next stage of its development. The bank’s board of directors has approved the upcoming issuance of fixed and variable-rate subordinated securities with a nominal amount of at least Rs 500 million. Once approved by regulatory authorities, these funds will be used for the company’s general purposes, including the expansion of its asset portfolio.
“These two initiatives demonstrate our commitment to growing sustainably, prioritizing organic growth over external growth, and constantly challenging ourselves while maximizing shareholder value,” adds Brian Ah-Chuen.
Operating since 2010 through its four main pillars, namely International Banking, Treasury, Private Banking, and Domestic Banking, ABC Banking Corporation has already established an excellent international reputation, as evidenced by awards received from the media, including Euromoney magazine, Capital Finance International Magazine, and Global Banking & Finance Review. The bank also has two Representative Offices, one in Hong Kong and the other in Dubai.
Mauritius Times ePaper Friday 12 January 2024
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