Standard Chartered Kenya Gains as Rights Advisers Appointed

Standard Chartered Bank Kenya Ltd. (SCBL), the country’s fourth-biggest lender, advanced in Nairobi trading after appointing advisers for a rights offer.

Shares of the Nairobi-based lender climbed 1.6 percent to 196 shillings by the 3 p.m. close in the capital, the biggest gain and highest price since Aug. 10.

Stanchart, as the lender is known, appointed Standard Chartered Securities Kenya Ltd. to advise it on an offer of stock to existing shareholders and named Standard Investment Bank Ltd. as the lead sponsoring stockbroker, it said yesterday.

“The appointment of advisers shows they want to do it very soon so people have begun taking positions,” Emma Mareri, an analyst at Nairobi-based African Alliance Kenya Securities Ltd., said in a phone interview today.

In May, shareholders approved the rights offer aimed at raising 3.2 billion shillings ($38.2 million). The bank will offer 37 million ordinary shares to existing investors, increasing the authorized share capital to 1.91 billion shillings from 1.78 billion shillings.

Stanchart said Aug. 9 first-half profit surged 82 percent to 4.54 billion shillings. Net interest income, the money banks earn from charges on loans, advanced 62 percent to 7.33 billion shillings.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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