Investec Plan Private Banking Expansion with Financing Move

Contributing Editor

9 May 2006

Investec said it plans to raise up to R4 billion ($660 million) in bonds to fund growth in its private banking business. The bank, which is listed on both the London and Johannesburg stock markets, said it will launch two securitisation funding platforms, worth a combined R4 billion. The bank added that the funding: “would allow Investec Private Bank to continue to offer clients superior service at competitive rates on certain banking products...An additional platform to be launched shortly by Investec's Treasury & Specialised Finance division will complement commercial property advances in a similar manner.” It is likely the expansion will take place mostly in South Africa, where the local economy has been very buoyant in recent months. Investec also recently issued a surprise trading statement in London ahead of its full-year results on May 18, which said it would achieve its 2007 profit forecast this year and had benefited from strong growth in its UK private banking business.