The main purpose of this capital raising is to sustain and fund the growth of the Bank as it expands in both the domestic market and regionally. James Benoit, ABL’s Chief Executive Officer commented “The current capital increase is another vote of confidence from our existing shareholders, who have believed in our vision and strategies from the start, and from new investors who have examined the track record of the Bank and are excited by our growth prospects. This new capital will take our total regulatory capital (TIER1 and TIER2) to nearly Rs2.0 billion and positions us to continue our profitable growth in our home market of Mauritius as well as to start to execute on our strategy of regional expansion.

ABL has a well-defined strategy to expand its operations in the SADC and COMESA regions, both organically and through carefully selected acquisition opportunities. Any acquisition by ABL must fit a rigorous set of criteria that incorporates valuation, operational profile, strength of existing domestic operations and the ability for ABL to exercise control, either directly or in partnership with other key shareholders.

In line with this expansion strategy, ABL has also announced an investment of USD 9.5m for a 35% stake in Kingdom Financial Holdings Limited (“KFHL”), an investment holding company domiciled in Zimbabwe with interests in the banking, stockbroking and asset management sectors in Zimbabwe and Malawi.

KFHL has a focused and resilient business model as evidenced by its impressive financial performance over the past decade, despite the challenging economic environment in Zimbabwe over this time. The investment by ABL is an endorsement of this business model, which is underpinned by innovative products; a strong management team; best in class IT systems; and close relationships with clients. These characteristics are all shared with ABL and the alignment of business models was a key attraction of the transaction for ABL.

Arnaud Lagesse, Chairman of ABL, outlined how the transaction was consistent with ABL’s strategy for regional expansion. He said “KFHL is a profitable financial services group in the high growth southern African market. The transaction is highly accretive for ABL, but also provides us with a unique opportunity to expand our franchise in the SADC region through an established local operation and with highly credible local partners.”

The founder and current anchor shareholder of Kingdom, Nigel Chanakira, said “this transaction will open new channels of much needed capital, lines of credit and deal flow for our loyal client base. I am excited about the prospects beckoning on our horizon.”

Kamben Padayachy, General Manager and Head of Global Banking, Treasury and Markets for ABL highlighted the potential returns of the transaction, as well as the careful structuring of the deal to minimize the risk for ABL. “This exceptional investment opportunity has the potential for high rewards in a largely undeveloped market. The proposed transaction structure will enable ABL to appropriately mitigate inherent risks to ensure that the full benefits of the transaction are obtained.”

AfrAsia Corporate Finance acted as Exclusive Arranger for the capital raising and as sole transaction adviser to ABL and co-adviser to KFHL on the KFHL investment. Cosmos Capital acted as co-adviser to KFHL with regards to the investment by ABL.

The investment completes the recapitalisation of KFHL and paves the way for the group to accelerate its strategic initiatives to consolidate the operations of its key subsidiaries.

Kingdom has been pursuing several initiatives to recapitalise its operations by raising US$25 million, comprising US$15 million equity and US$10 million debt finance.

The capital-raising model sought to raise the required amount through a combination of a rights issue, private placement and public offering.

The equity capital raised is largely required to recapitalise Kingdom Bank Limited, the flagship banking subsidiary in the Kingdom stable.

“After months of hard work by Kingdom directors, management team and advisors, we are pleased to advise all our stakeholders, and most importantly our valued clients, that Kingdom and AfrAsia Bank Limited have reached agreement.

AfrAsia will invest US$9.5 million in Kingdom 35 percent equity stake,” Kingdom said in a statement to Herald Business.

“We, Kingdom and AfrAsia, are pleased with this development and are optimistic about the future of the company as we prepare a new chapter in the future of Kingdom through the various strategic initiatives that were outlined when the capital raising programme was announced.”

The investment by AfrAsia and the US$2,8 million raised through the rights issue will be used to recapitalise Kingdom Bank, which together with the existing capital will result in Kingdom Bank having core capital in excess of the minimum capital requirements set by the Reserve Bank of Zimbabwe.

Kingdom said it had already received approvals from the Ministry of Finance, the Exchange Control and the Bank Licensing, Supervision and Surveillance divisions of the Reserve Bank of Zimbabwe and the Ministry of Youth Development, Indigenisation and Empowerment.

“Kingdom is working towards securing an outstanding approval which the group is confident will be granted,” the group said.

“We take this opportunity to thank our stakeholders, the relevant regulatory authorities and our valued clients for their continued loyalty, support and confidence in the company.”

AfrAsia is a rapidly growing and significant banking group in Mauritius. Mauritius has become an increasingly important market for international capital seeking opportunities in Africa.

Group chief executive officer Mrs Lynn Mukonoweshuro said: “This is a momentous and important occasion for us as we embark on a new future in the history of Kingdom. The past few years have been challenging but by God’s grace, through the continued loyalty of our customers and the support of the relevant stakeholders, including our regulator, we have persevered.

“Kingdom will never be the same again and we face the future with renewed confidence of achieving the strategic objectives we are pursuing to grow our business.”

The founder and anchor shareholder of Kingdom, Mr Nigel Chanakira, said he was never in doubt that Kingdom would be able to raise the required capital.

“We are led by this unwavering faith that we achieve anything that we set our minds to accomplish.

It has been a challenging yet exciting period since we embarked on this capital raising exercise, and never a moment did I doubt that we would succeed as has been vindicated by the investment in Kingdom by AfrAsia.

“The AfrAsia Bank transaction will open new channels of much needed capital, lines of credit and deal flow for our loyal client base. I am excited about the prospects beckoning on our horizon. ”

Highlights

4. Gas content calculation by Geoservices & Geogas is expected to be completed during next month.

Muara Enim Results & the 2012 Muara Enim PSC Drilling Plan

1. Results of the Muara Enim well are consistent with the previous estimates for prospective gas-in-place provided by PT Trias Energy Perkasa (2011) and RISC (June 2010).

2. After completion of the next well NuEnergy, together with Netherland Sewell and Associated Indorporated (NSAI), plan to generate an independent report confirming the prospective and contingent gas resources in NuEnergy’s Muara Enim CBM concession.

3. The drilling rig is currently preparing to move to the second Muara Enim drill site located 5 kilometres to the west and it is planned to drill to a depth of 1,000 metres.

4. After the completion of the second Muara Enim well, NuEnergy will consider fast-tracking the extraction process by drilling a pilot production well to be completed in 2012 in the Muara Enim Production Sharing Contract (PSC) area.

Muara Enim, Muara Enim II & Rengat PSC’s

Muara Enim PSC is located in the prolific South Sumatra coal basin and the PSC covers an area of 652.6 km2. Mura Enim PSC is adjacent to the NGY operated Muara Enim II PSC which covers an area of 1170.9 km2.

Both PSC’s and the surrounding areas have been drilled for over 100 years and the basin has been subjected to extensive seismic and drilling operations during that period. The continuity of the thick Mangus and Subam coal seams has been proven over this period. Both PSC’s have major power and gas lines running through them providing immediate market access.

Muara Enim PSC is operated by the wholly owned subsidiary of NuEnergy Gas, PT Trisula CBM Energi. NuEnergy Gas’s joint venture partner under the PSC is Indonesia’s National oil and gas corporation, PT Pertamina (60%).

Rengat PSC, 100% NuEnergy Gas controlled and operated, is located in the central Sumatra coal basin. This PSC covers an area of 3000km2 and is in the vicinity of major gas pipeline infrastructure. The company plans to seek a JV partner for this PSC in Q1/2 2012.

Location Map – Muara Enim & Muara Enim II PSC’s

Intra Energy Corporation Limited (IEC) is pleased to announce that the Mining Licence has been issued to Tancoal Energy Limited (Tancoal) over the initial mining area of the Mbalawala Mine at the Ngaka Coalfields in southwest Tanzania (refer figure 1.0). Tancoal is a Joint Venture between IEC (70%) and the National Development Corporation of Tanzania (30%).

Coal mining will commence during August when land compensation has been finalised. Mining will commence at the rate of 10,000 tonnes per month to meet sales contracts to local industry. Production will increase as additional sales contracts are concluded. The Company owns and operates its own fleet of mining and hauling equipment.

Product coal will be trucked to the Ndumbi load-out port on the east shore of Lake Nyasa where it will be loaded onto barge vessels to transport to the Itungi receival port on the northern shore of the lake for sales offtake. Transportation infrastructure is currently in place to meet initial contracts.

The Mbeya Cement Company has signed a contract with Tancoal Energy for importing coal to ensure reliable supply of power.

Speaking at a brief signing ceremony in Dar es Salaam yesterday, the General Manager for Mbeya Cement, Mr. Mauve Ngunze, said that Tancoal Energy was prepared to invest money for supplying the coal for the organization.

“We are happy to see a local mining company prepared to invest money to ensure we have a reliable long term supply for Tanzania and our organization.”

“The Company has always looked to support the local industries where there were opportunities and this is an important step,” he said.

On the other hand, the Chairman of Intra Energy Corporation, Mr. Graeme Robertson, said the importation of the substitute will save valuable foreign exchange and enhance industrialization.

“Apart from that, the importation of the coal will help generate additional infrastructure and local employment,” he added. Tanzania currently imports coal from South Africa.

Meanwhile, Tancoal Energy in collaboration with National Development Corporation(NDC) has plans to build coal fired power stations in Songea and Dar es Salaam to save as a critical element in energy security for the country.

“This is a long term project, for now we are focusing on how Intra Energy in conjunction with Tancoal and NDC can build and operate the stations,” he said.

The utilization of coal by industries will replace expensive diesel and save forests, Mr. Robertson said. He said stations will generate 100mw.

First-ever visit by Singapore business delegation to explore opportunities in island nation.

There is a rice farm just north of the airport in Mauritius with Singapore’s name on it.

Opened in 2009 and spread over 500ha, Vita Rice is the island nation’s largest agriculture development outside the production of its traditional mainstay – sugarcane.

Vita Rice’s boss Graeme Robertson is aware of the irony of Singapore company growing rice in Mauritius. He told The Straits Time: “Singapore does not have rice farming skills. But is does have the engineering, administrative, marketing and financial skills without which the farming is unlikely to proceed on a commercial basis”.

His Singapore-based private equity firm, Intrasia Capital, is the project’s major shareholder, along with the Mauritian Government. It has big plans: to provide one-third of Mauritius rice needs by 2014, as well as export to Singapore. Like Singapore, the nation of 1.3 million people imports all its rice – some 75,000 tonnes a year.

There is also a chance of Crocodile polo shirts making a splash in this sunny isle. The Singapore clothing label is in town to sass out the market for its apparel. Said assistant General Manager Lim Keng Boon: “Though the population is small, it has attractive incentives for investors and it seems Mauritius is a favourable place for tax planning in respect to venturing into India and African countries”

He is also looking for a factory in this country, which is known for its textile industry. Crocodile currently makes its apparel in China, Thailand and Indonesia but costs there is rising, he said.

This first-ever visit by a Singapore business delegation has generated substantial interest: 24 companies signed up for the trip with the Singapore Business Federation (SBF).

Some, like Intrasia have already dipped their toes into Mauritius waters. But most, such as Crocodile, are exploring options.

Their presence here is in conjunction with President S R Nathan’s state visit. Today, he will witness the signing of a memorandum of understanding between the SBF and the Mauritius Board of Investment to enhance business ties. Last year, Singapore investments here totaled US$15.1 billion (S$18.6 billion), although much is ultimately channeled to India.

There is a potential for more, said SBF Chairman Tony Chew, who added that Mauritius was “a promising business hub” with remarkable similarities to Singapore. It has political stability, a pro-business environment, good infrastructure, a robust banking system and treaties that grant companies residing here preferential trade and investment benefits with Africa and beyond, he said.

As more adventurous Singapore firms look beyond traditional markets to place like Africa, Mauritius – just off the continent – is a good starting point. Exports from Africa to Asia have tripled in the past five years, noted Standard Chartered Bank’s regional Chief Executive for Singapore and South-East Asia, Mr. Ray Ferguson. Mauritius with membership of trade and political groupings like the Common Market for Eastern and Southern Africa, offers companies “preferential” access to a market of 380 million consumers, representing an import potential of US$90 billion”.

With its eye on this pie, spice company Nomanbhoy and Sons is exploring the feasibility of a logistics handling and transport facility here for spices sourced from Madagascar, Comoros, Zanzibar and other islands. It is also considering establishing an essential oils extraction plant.

But there are challenges too, said Mr. Chew. One is the small domestic market. Firms may need to explore an export strategy to gain economies of scale. “The small population also means that certain industries, such as labour intensive ones, will need to depend heavily on imported manpower” Mr. Chew added.

More also needs to be done to the infrastructure. The road network, for instance, is in need of expansion. Still companies like Intrasia have their sights on the longer-term horizon. A combination of government support, land availability and an excellent financial regime was why it chose Mauritius to further its rice-growing ambitions.

Also, as Mr. Robertson noted, “it is Africa that is the fastest-growing rice consumer in today’s world”.

Update
NuEnergy Capital Limited (ASX:NGY) presently has two Coal Bed Methane (CBM) Production Sharing Contracts (PSC) granted covering approximately 3,600 km2, a third PSC moving to grant and two further PSC’s with priority established with the Indonesian regulator. Planning for field operations is well advances and anticipated to commence drill site preparation in April/June 2011.

Director Appointment
Mr Graeme Robertson has been a shareholder of the Company and a strong supporter of the Company and its plans to develop Coal Bed Methane projects in Indonesia. Mr Robertson has had significant interests in Indonesia for the last 40 years.

He has been responsible for pioneering and managing world class mining, energy and transport infrastructure operations throughout Africa, Australia and the Asia-Pacific region. He was CEO and developer of the largest open cut coal mine in the Southern Hemisphere, PT Adaro Indonesia, and is a former Managing Director of New Hope Corporation Limited (1987 – 2005). In 2010, Mr Robertson was awarded the Coaltrans Life Achievement Award for his contribution to the coal industry. Mr Robertson is Chairman of Directors for Atomic Resources Limited (ASX:ATQ).

As part of the recent recapitalisation of the Company with the $11m raising Mr Graeme Robertson through his company Aspac Mining Limited moved to become a substantial shareholder and cornerstone investor of NuEnergy Capital Limited.

The Company extends a warm welcome to Graeme Robertson upon his appointment as a non-executive Director.

About NuEnergy Capital Limited (ASX:NGY)

NuEnergy Capital Limited is an Australian emerging energy company with an immediate focus on coal bed methane in indonesia. It has acquired an Indonesian company (IndonCBM Limited) which owns a number of coal bed methane interests in Indonesia. The Company’s overall strategy is to explore and establish commercial resources/reserves over its CBM projects, construct production facilities and commence production as soon as possible.

Atomic will also raise about A$5 million from a share purchase plan (SPP) that entitles eligible shareholders to purchase up to A$5,000 worth of shares in the company at A$0.45 cents per share.

Atomic will use the funds raised in the Placement and SPP to commence First Stage Mining at Atomic’s Ngaka coal project.

This will be done through Tancoal Energy Limited, a joint venture between Atomic via Atomic’s subsidiary Pacific Corporation East Africa Ltd (PCEA) and the National Development Corporation of Tanzania.

The placement proceeds will be used to fund infrastructure and equipment purchases (A$13 million) at the Mbalawala mine within the Ngaka Basin as well as initial working capital.

Proceeds will also fund the cash component of the consideration to purchase the 15 per cent of PCEA Atomic does not already own from Peter Tsegas for US$2.5 million in cash and 250,000 newly issued Atomic shares.

In addition, funds will be used for initial exploration costs of the ASEAN coal Joint Venture (A$1 million) and provide additional working capital to pursue other joint venture opportunities with highly experienced exploration and geological entities and targeting prospective coal resources for development in Australia, ASEAN and Africa.

The placement will be conducted in two tranches. Tranche 1 will involvee the proposed issue of 20,740,957 new shares to raise A$9,333,431 and settlement of Tranche 1 is due to take place on 4 March 2011.

Tranche 2 involves the proposed issue of 34,814,598 new shares to raise A$15,666,569. The issue of Tranche 2 shares is conditional upon Atomic shareholder approval which will be sought at Atomic’s EGM to be held in April 2011.

Southern Cross Equities acted as Lead Manager and Book Runner to the institutional Placement. The SPP will be fully underwritten by Aspac and Farjoy Pty Ltd. Aspac’s participation in the underwriting of the SPP offer is also subject to shareholder approval.

During a press conference held at the Bank’s headquarters in Port Louis, James Benoit, CEO of AfrAsia Bank, said, “We are very proud that our private banking services have been recognised by the industry in just over three years of operations. The fact a Mauritian headquartered bank such as AfrAsia has won it also reflects a global trend that clients want expertise and decision taking that is closer to them. Most importantly, this award reflects our unrivalled commitment to collaborative and privileged relationships that we build with our customers, providing them with sound financial advice, innovative banking products and carefully considered wealth management solutions for every stage of their wealth development.”

The annual Euromoney Private Banking Survey provides a qualitative and quantitative review of the best services in private banking, by region and by areas of service. The Survey covers both global and regional categories and includes over 65 countries, as well as the vast array of services that wealth management provides. Factors such as assets under management, profitability, ratio of clients to relationship managers and services offered, among other things, are all considered when ranking the top private banks. The Private Banking Awards are the most prestigious in the growing area of wealth management. They are voted for by the people who know the industry best, the private bankers themselves.

“With the unique product offering including Titanium Cards, innovative savings packages and investment solutions coupled with this prestigious award, we are well placed to take full advantage of AfrAsia Bank’s expansion plans into the region. However, none of this would have been possible without the continued dedication and can-do-attitude of our people as well as the trust and support of our clients who believed in our vision right from the start,” added Thierry Vallet, Head of Private Banking & Strategic Development of the Bank.

Since its launch, AfrAsia Bank has been targeting the affluent side of the local and regional market whether entrepreneurs, executives or their families. Several private banking and private wealth management solutions have been devised in to serve a clientele with complex financing and investment needs. The Bank is also pursuing an ‘audacious’ strategy to tap into the growing trade, investment and capital flows between Africa and Asia that are now increasingly evident. The Bank was among the first to recognize the growth potential of the African Lions in marching the rise of the Asian Tiger economies and is has been setting up capital investment structures in South Africa, India, Singapore and Australia to facilitate money flows into Africa.