ABC Banking Corporation Unveils Bold Restructuring Plan

ABC Banking Corporation is planning a restructuring in order to strengthen its operations and expand its services. The bank aims to create a new legal entity to oversee its banking division and establish a non-banking subsidiary.

To support this, the bank will issue subordinated bonds through a public offering, raising Rs 500 million, with the possibility of an additional Rs 200 million.

The restructuring requires approval from shareholders and regulators, with the new entity, ABCB Holdings Ltd, acting as the parent company. This new structure will provide greater flexibility and access to opportunities in financial services.

Following the restructuring, ABCB Holdings will be listed on the Main Board of the Stock Exchange of Mauritius, replacing ABC Banking Corporation’s current listing. Shareholders’ interests will remain unaffected as shares will be exchanged on a 1:1 basis.

The board of directors expects this restructuring to improve capital access and the visibility of shares. With strong financial performance and profits of approximately Rs 298 million as of June 30, 2023, ABC Banking Corporation is well-prepared for its next phase of development.

The board has approved the issuance of fixed and variable-rate subordinated securities worth at least Rs 500 million, subject to regulatory approval.

These funds will be used for various corporate purposes, including expanding the bank’s asset portfolio, demonstrating the bank’s commitment to sustainable growth and shareholder value.

Source: Le Mauricien