Investec to boost capital ratios with £145m offering

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Investec has launched a £145m share offering to increase its capital ratios.

The proposed placing represents 5 per cent of existing ordinary shares and will be used to fund a tender offer of Sterling and Rand preference shares, the board of directors says in a statement.

The placing combined with the tender offer “are intended to optimise the capital base”, this morning’s statement says and is effective immediately.

The company’s existing common equity Tier 1, Tier 1 and leverage ratios would be 9.7 per cent, 10.7 per cent and 7 per cent respectively, according to a calculation in Investec’s statement based on  company figures from 31 March and Wednesday’s share price.

If the tender offer had 100 per cent take up, these figures would increase to 11.2 per cent for the common equity Tier 1 ratio, 11.9 per cent for the Tier 1 ratio and 7.7 per cent for the leverage ratio.

The preference shares would not qualify for additional Tier 1 capital.

Proceeds from the offering not used in the tender would be used for “general corporate purposes”, the statement said.