Absa Capital Celebrates Second Anniversary on Strong Footing

06 May 2008 Graeme Coetzee

Absa Capital Celebrates Second Anniversary

on Strong Footing


Absa Capital, a division of Absa Bank Limited, celebrates its second anniversary today having performed strongly and gained increasing recognition in the banking industry since its launch in May 2006.


In the year ended December 2007, the investment bank’s contribution to Absa Bank Limited Group’s earnings increased 25% year-on-year to 17%, on the back of a 51% increase in revenue to R3.8bn.


These excellent results were a consequence of a strong performance across all business units. The key drivers of this performance have been, and continue to be: the acquisition, development and retention of the best talent in the market;   leveraging the synergies between Barclays Capital and Absa Capital in terms of technology, operating models, product innovation and distribution; and being part of one of South Africa’s leading financial institutions with advantages of size and footprint.


John Vitalo, Chief Executive Officer of Absa Capital said: “It’s incredibly rewarding to look back over the past two years and acknowledge the great strides that the team at Absa Capital has made, and continues to make, towards realising our ultimate goal of becoming South Africa’s leading investment bank.”


Last year was quite a landmark year for Absa Capital as its identity took shape, growth accelerated throughout the year and it increased its share of the wallet.


Deal and new product highlights for 2007 included:

-          the largest ever leveraged buyout in South Africa (Edcon);

-          the largest DMTN programme of the year (Transnet);

-          the first ‘Can do’ option listing on the JSE; and

-          the launch of multiple new derivative products for both investors and risk managers.


This year has started off on a similarly auspicious note with Absa Capital’s NewGold Exchange Traded Fund eclipsing the Satrix40 in January to become South Africa’s largest ETF.


Also in 2008 to date, Absa Capital and its empowerment partner Vunani Capital have arranged debt on behalf of the Development Bank of South Africa and Telkom to the tune of R1bn and R2.2bn respectively. The latter was a real litmus test for the credit appetite of the local debt capital market, which had been subdued since the emergence of the sub-prime crisis last year.


“We are no more the new kids on the block. Our success is reflected daily in the trust that our clients place in us to execute innovative transactions on their behalf, both in South Africa and abroad,” said Vitalo.

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