Development Bank of Zambia ZMK 150 Billion Medium Term Note ( MTN ) Programme Brings Multiple Firsts to the Market

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Harry Daniels
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For immediate release Development Bank of Zambia ZMK 150 Billion Medium Term Note ( MTN ) Programme Brings Multiple Firsts to the Market Issue and listing of ZMK 68.

1 For immediate release Development Bank of Zambia ZMK 150 Billion Medium Term Note ( MTN ) Programme Brings Multiple Firsts to the Market Issue and listing of ZMK Billion Senior Unsecured Notes under the Programme Lusaka, 21 March 2007 The Development Bank of Zambia ( the Bank ) has announced the successful arrangement of a ZMK 150 billion domestic medium term note programme ( the Programme ) by Standard Chartered on behalf of the Bank. An initial tranche of 5-year senior unsecured notes due in February 2012 Series No: DBZ 01, Tranche No: A was issued by the Bank on 28 February 2007, in an amount of ZMK billion (increased from original target issue amount of ZMK 40 billion), with coupon payments on this tranche to be made on a floating interest rate basis (subject to a minimum pre-determined level). Approvals to establish the Programme, to issue Tranche No: A, and permission to list the Notes were obtained from the relevant capital market regulatory authorities in Zambia, comprising the Securities and Exchange Commission and the Lusaka Stock Exchange. Standard Chartered was appointed sole Arranger, Manager and Bookrunner for the Programme and also Underwriter for the initial tranche issued. Assisting Standard Chartered on this transaction were Deloitte and Touche (as Reporting Accountants), Lewis Nathan Advocates (as Legal Advisors), the LuSE Central Shares Depository (as Transfer Agents) and Stockbrokers Zambia (acting as Sponsoring Brokers). A transaction that achieved multiple landmarks and was a major milestone for the Bank This transaction represents the first time ever in the history of the Zambian capital markets that a domestic (Zambian Kwacha) MTN programme has been established. It is also the largest single issue to be offered to Zambian institutional fixed income investors. 1

2 A resounding success, Tranche No: A was oversubscribed by approximately 70% with the aggregate nominal amount increased from the initial offer of ZMK 40 billion to ZMK billion. The proceeds of the issue and that of subsequent issues under the Programme will be used primarily to finance the Bank s local currency asset book and to meet some of the corporate and project funding requirements across various sectors of the Zambian economy. Richard Phiri, acting Managing Director of the Development Bank of Zambia, commented: "We are extremely pleased with the confidence that the investor community has shown in our business and its future prospects. This debut local currency note issue forms part of our core strategy in mitigating foreign currency risks otherwise associated with our lending activities and also helps contribute to the ongoing development of the Zambian capital markets. When combined with expected cash flows from our operations, the MTN programme provides us with the capacity and flexibility to increase funding of our medium-term loan portfolio and provides room to continue pursuing the profitable growth and expansion of our business. We are delighted at the excellent results of the offering, which has surpassed our initial target and expectations, and highly appreciative of the support of the deal team led by Standard Chartered and endorsement of the transaction by our regulatory and supervisory bodies, institutional investors and other stakeholders. On the significance of the transaction, Ade Adebajo, Director and Head of Debt Capital Markets (Africa), Standard Chartered, added, "The transaction is a landmark within the Zambian corporate bond market with its success underpinned by strong investor demand and diversification achieved at both domestic and international (cross-border) levels. We were able to leverage off our strong and intimate knowledge of local market conditions through our long-standing presence and position within the Zambian financial markets with our international reach and depth of resources. We expect this issue to help accelerate development of the local corporate bond market, enhance secondary market trading potential and also provide a platform to encourage further diversity in terms of issuers within the Zambian capital market. 2

3 Thomas Aaker, Managing Director of Standard Chartered Bank Zambia PLC also added, "We applaud this initiative by Development Bank of Zambia on its debut entry into the corporate bond market. We are delighted to have led this ground-breaking transaction, which reinforces our reputation in the market place as a leader in the introduction and development of innovative financial products, and also underlines our commitment to be the right partner to our stakeholders, including the banking and capital market regulatory authorities and our corporate and institutional clients. We are also extremely pleased with the support provided by the other local professional advisers to the transaction, and encouraged that the proceeds of the issue will be used to support ongoing financing and investment activities in manufacturing, tourism, agriculture, infrastructure and other key sectors within the economy. - ends - For more information, please contact: Sonny Zulu Head, Corporate Affairs Standard Chartered Bank Zambia PLC Tel: Fax: Sonny.Zulu@zm.standardchartered.com NOTES TO EDITORS: About the Development Bank of Zambia The Development Bank of Zambia ( DBZ ) is a development finance institution established in the early 1970s by an Act of Parliament, as a joint venture between the Government of the Republic of Zambia, public sector financial institutions, local private sector and foreign bilateral and multilateral institutions. The current shareholders of DBZ include the Government of the Republic of Zambia, the 3

4 Zambian State Insurance Corporation, the EXIM Bank of India and the Development Bank of Southern Africa. In its mandate to provide medium and long-term development finance, DBZ has invested extensively in agriculture, agro and mineral processing, forestry, quarrying, textile pulp and paper, fisheries and manufacturing sectors. About Standard Chartered Zambia PLC Standard Chartered Bank Zambia PLC started its first operations in the then capital city, Kalomo, in SCB Zambia currently employs 420 people with 15 branches across the country, and is the only international bank listed on the Lusaka Stock Exchange. SCB Zambia provides both consumer and wholesale banking services. Consumer banking provides VISA debit cards, personal loans, mortgages, deposit taking and wealth management services to individuals and small to medium sized enterprises. Wholesale banking provides corporate and institutional clients with services in trade finance, cash management, lending, security services, foreign exchange, debt capital markets, agriculture and corporate finance. SCB Zambia remains a leader of innovative banking in Zambia. It was the first bank to launch the VISA Electron Debit Card, toll free Call Centre, High Yield Deposits, Zambian Kwacha Option Treasury Products and the Global Project Plus, which is a customised, integrated package of cash management, trade services and global market solutions. Over the past few years, SCB Zambia has been the recipient of various awards including Bank of the Year in Zambia from the Banker Magazine and the Banker Financial Times for 2003, 2004 and 2005, Best Bank in Zambia for 2005 awarded by Euromoney publications and Best Emerging Market Bank in Zambia awarded in 2005 and 2006 by Global Finance publication. Standard Chartered is also committed to all its stakeholders by living its values in its approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators. 4

5 About Standard Chartered s Debt Capital Markets (Africa) Group The Debt Capital Markets (Africa) Group was established in 2002 to enhance the range of Capital Markets financing solutions offered to Standard Chartered s clients within sub-sahara Africa in both local and international currencies. Based primarily out of Standard Chartered s London offices, the team leverages Standard Chartered s presence across Africa, and its strong capital markets capabilities in these markets, to arrange and distribute fixed income, asset-backed and future flow transactions for clients within both public and private sectors. Standard Chartered leading the way in Asia, Africa and the Middle East Standard Chartered PLC is listed on both the London Stock Exchange and the Hong Kong Stock Exchange and is consistently ranked in the top 25 among FTSE-100 companies by market capitalisation. Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,400 branches (including subsidiaries, associates and joint ventures) in over 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. As one of the world's most international banks, Standard Chartered employs almost 60,000 people, representing over 100 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market. With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East. Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East. Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as award- winning solutions. 5

6 Trusted across its network for its standard of governance and corporate responsibility, Standard Chartered takes a long term view of the consequences of its actions to ensure that the Bank builds a sustainable business through social inclusion, environmental protection and good governance. Standard Chartered is also committed to all its stakeholders by living its values in its approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators. For more information on Standard Chartered, please log on to This announcement appears as a matter of record only and is not, and should not be considered to be, a solicitation, offer or invitation in any jurisdiction to purchase or otherwise invest in any securities. 6

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