• Standard Chartered Zambia raised its capital to 520 million kwachas (about $27.5 million) through a bonus share issue, without raising new funds.

• The move complies with new central bank rules requiring foreign banks to hold at least 520 million kwachas in capital.

• The increase comes as the group scales back retail operations in Zambia and refocuses on priority markets in Asia and the Middle East.

Standard Chartered Bank Zambia has increased its share capital to 520 million kwachas, about $27.5 million, from 416.7 million kwachas, bringing the subsidiary in line with stricter capital rules set by the country’s central bank.

A Capital Increase Without Fresh Cash

The bank did not raise new funds from investors. Instead, it issued bonus shares, converting accumulated reserves into share capital.

Rather than distributing part of its profits as cash dividends, the lender capitalized its reserves and allotted new shares to existing shareholders on a proportional basis.

The transaction resulted in the issuance of 416,745,250 new ordinary shares with a nominal value of 0.25 kwacha each. The approved ratio was one new share for every four shares held. Shareholders recorded in the register as of Friday, January 9 automatically received one bonus share for every four shares in their portfolios.

Trading in the stock was temporarily suspended on Monday, February 23 to allow for technical adjustments. The newly issued shares are scheduled to begin trading on the Lusaka Securities Exchange (LuSE) on Thursday, February 26.

The move enables the bank to comply with revised regulatory requirements. The central bank has raised the minimum capital threshold for locally owned banks to 104 million kwachas, from 12 million previously, and for foreign banks to 520 million kwachas. The reform is intended to strengthen the banking sector and ensure lenders are better positioned to support Zambia’s development priorities.

By reinforcing its capital base, Standard Chartered Zambia also improves its capacity to fund future growth.

A Broader Strategic Retrenchment

The capital adjustment comes as the parent group, listed in London and Hong Kong, continues to refocus on priority markets and segments.

In recent years, Standard Chartered has scaled back operations in several African markets. In Zambia, it has initiated the sale of its retail and wealth management businesses. Globally, the bank has shifted attention toward markets it considers more profitable, particularly in Asia and the Middle East.

Sandrine Gaingne