Nedbank R5bn capital optimisation initiative

Nedbank CIB acted as Corporate Adviser and Joint Sponsor to Nedbank Group Limited

 

Nedbank CIB, acting through its Corporate Finance Team, is pleased to announce that it acted as both the Corporate Adviser and Joint Sponsor to Nedbank Group Limited (Nedbank) on its capital optimisation initiative.

In March 2023, due to a strong balance sheet and a structural capital surplus, Nedbank initiated a R5bn capital optimisation initiative to be executed through both a general share repurchase programme and an odd-lot offer. The group acquired c23 million shares for R5bn, including an odd-lot offer of 2,7 million shares at a total value of R638m. The initiative was executed at attractive levels, enhancing both return on equity and headline earnings per share metrics. The odd-lot offer also enabled Nedbank to reduce the complexity and cost of managing a large shareholder base.

The transaction highlights CIB’s advisory expertise and proposition within the listed financial services sector.