Standard Bank Group sole advisor and bookrunner in USD70m Copperbelt Energy Corp rights offer
26 March 2014

Standard Bank Group, 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.

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 nations 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," says Mr Mesh Pillay, head of equity capital markets for sub-Saharan Africa at Standard Bank Group.

"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 says: "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 1,000km of overhead lines and 41 high voltage substations with a current carrying capacity of 700MW. The company's current market capitalisation is equivalent to USD188-million.Read more about Standard Bank Group's capabilities in project finance and capital finance, see Copperbelt Energy Corporation Plc 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.

About CEC Africa Investments Limited 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.

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