State Bank of Mauritius gets nod for bonds to fund expansion
PORT LOUIS Dec 12 (Reuters) - State Bank of Mauritius has received the go-ahead to issue two bonds to raise funds for expansion on the Indian Ocean island and overseas, the stock exchange said on Thursday.
SBM, the island's second-largest bank, obtained approval to raise 1 billion rupees ($33 million) from a 10-year bond and $50 million from a second issue as it explores new markets in Africa and Asia.
"The purpose for offer of the bonds being made is to further strengthen its Capital Adequacy Ratio and capital base and also increase the number of sources from which SBM obtains its funding to finance its local business growth and overseas," the Stock Exchange of Mauritius' listing committee said in a statement.
SBM, which already has a presence in India and Madagascar, reported a 13.6 percent rise in pre-tax profit for the 15 months ended September.
In the event the issues are oversubscribed, the bank may raise up to 1.5 billion rupees and $75 million from the two bonds, the listing committee said.
The bonds will be listed on the Stock Exchange of Mauritius around March 25, 2014, for the Mauritian currency bond and June 18, 2014, for the dollar-denominated instrument. ($1 = 30.2000 Mauritius rupees) (Reporting by Jean Paul Arouff; Editing by Richard Lough)