ABC Banking Corporation Ltd is poised to undergo a significant restructuring by establishing a legal entity overseeing its banking division and a new non-banking subsidiary. This new entity, ABCB Holdings Ltd will be listed on the main board of the Stock Exchange of Mauritius. Concurrently, the bank plans to issue subordinated bonds through a public offering, amounting to Rs 500 million, with an option to raise an additional Rs 200 million.
“After more than a decade of sustained growth, this reorganization reflects our vision and ambitions as a premium bank. It will enable us to solidify our foundation, expand our offerings, and move forward with confidence and determination,” explains Brian Ah-Chuen, Executive Director of ABC Banking Corporation.
Since 2010, ABC Banking Corporation has had four main divisions: International Banking, Treasury, Private Banking, and Domestic Banking. The bank also operates two Representative Offices in Hong Kong and Dubai.
This reorganization, pending approval from the bank’s shareholders and regulators, will lead to the formation of a new legal entity, ABCB Holdings Ltd, serving as the parent company for both the banking and upcoming non-banking sectors. This organizational structure is designed to enhance the banking group’s agility and open new opportunities in financial services.
Following this reorganization, ABCB Holdings will join the Main Board of the Mauritius Stock Exchange, replacing ABC Banking Corporation’s current listing on the Development and Enterprise Market (DEM). ABC Banking’s ordinary shares will be exchanged for new shares in ABCB Holdings Ltd at a 1:1 ratio, ensuring unchanged shareholder interests. The board is confident that this move will facilitate capital access for the banking group and increase its share visibility.
Bolstered by an annual performance as of June 30, 2023, with profits of Rs 298 million, ABC Banking Corporation is gearing up for its next development phase. The bank’s board has approved the forthcoming issuance of fixed and variable rate subordinated securities, with a nominal value of at least Rs 500 million. Once approved by regulatory authorities, this initiative will generate funds for general corporate purposes, including the expansion of its asset portfolio.
“These two initiatives demonstrate our commitment to sustainable growth, prioritizing organic over external growth, and continuously reevaluating ourselves while maximizing shareholder value creation,” adds Brian Ah-Chuen.