Well-supported CBL placement will fund further growth
29 SEPTEMBER 2016
A NZ$60m placement of new fully paid ordinary shares in CBL Corporation Ltd at a fixed price of NZ$3.45 per share will enhance and support the funding of future growth opportunities for specialist insurer CBL Corporation in new and existing markets, said the company’s Managing Director, Peter Harris.
Mr Harris said the placement was only open today and was well supported by a broad range of investors across New Zealand, Australia, the USA, and Europe.
“We are very pleased with the level of support from our existing shareholders and I am delighted to welcome a number of new investors onto the CBL share register, which will add to our stock’s liquidity,” Mr Harris said.
Mr Harris said CBL had identified strong growth opportunities in several overseas markets, particularly Europe, Australia, and South-East Asia. A ratings upgrade from international financial ratings agency AM Best, which lifted its Financial Strength rating to A- (Excellent) had already generated increased business in Australia and Europe, and CBL’s planned acquisition of Securities and Financial Solutions Europe SA, France’s largest specialist producer of construction-sector insurance (and CBL’s largest single client), was expected to conclude early in the New Year.
“It is important that CBL continues deploying capital for long term growth, and maintains strong capital headroom out into the future”, said Mr Harris.
Settlement of the Placement is expected to occur on 4 October 2016. The Placement shares will rank equally with CBL's existing ordinary shares from allotment, including entitlement to receive the 1H2016 dividend if held on the Dividend Record Date.
UBS New Zealand Limited acted as Sole Lead Manager and Underwriter for the Placement.
Share Purchase Plan
In addition to the Placement, CBL is offering eligible shareholders in New Zealand the chance to subscribe for up to NZ$15,000 each of new, fully paid ordinary shares at the Placement price of NZ$3.45 per share, (a total of up to NZ$3m), through a non-underwritten Share Purchase Plan (SPP) to eligible shareholders.
Shares in CBL listed in October 2015 at NZ$1.55.
About CBL Corporation
CBL Corporation (NZX:CBL,
ASX:CBL) is a specialist insurance and reinsurance group
focused on credit and financial risk. CBL has a specialist
focus on credit risk products, sureties, guarantees and
financial bonds, alongside other non-traditional specialty
insurance products. The company targets niche markets with a
strong focus on profitable underwriting and low exposure to
natural catastrophe risk. CBL has eight offices spread
across 25 countries with more than 180 employees, and has a
financial strength rating of A- (Excellent) from AM
Visit http://cblcorporation.co.nz/ for further information