Standard Chartered Bank Zambia has proposed a significant bonus share issue aimed at strengthening its capital position and aligning with regulatory requirements, the Lusaka Securities Exchange (LuSE) has announced.
The proposal, which remains subject to shareholder approval, will be tabled at an Extraordinary General Meeting (EGM) scheduled for 17 December 2025.
If approved, the bank will issue one new ordinary share for every four existing fully paid-up shares, marking one of its most notable capital restructuring moves in recent years.
The initiative underscores the bank’s efforts to reinforce its financial resilience as regulatory capital expectations evolve across the region.
According to details shared by LuSE, the planned bonus share issue seeks to increase Standard Chartered Bank Zambia’s paid-up capital from ZMW416.7 million to ZMW520 million, enabling the institution to maintain a robust balance sheet while meeting the Bank of Zambia’s minimum capital thresholds.
The proposed bonus share issue will lift the bank’s total shares on issue from 1.666 billion to 2.08 billion.
While bonus shares do not raise new external capital, the conversion of distributable reserves into equity is expected to give the bank greater flexibility to absorb future shocks and support business growth.
LuSE stated that the shares will be issued by capitalising part of the bank’s distributable reserves, a common mechanism used by institutions across global markets to fortify their capital position without diluting shareholder ownership.
The Bank of Zambia has, in recent years, reinforced minimum capital requirements to ensure the financial sector remains resilient in the face of currency volatility, inflationary pressures, and global macroeconomic risks.
By proposing the bonus share issue, Standard Chartered Bank Zambia joins a growing list of institutions seeking to position themselves more competitively in a fast-evolving financial environment.
Standard Chartered, one of the country’s oldest international banks, has been operating in Zambia for more than a century, and the capital strengthening move is expected to reinforce confidence among both domestic and foreign investors.
For existing shareholders, bonus issues are typically welcomed as they provide additional shares at no direct cost, although they do not immediately alter the overall market value of individual holdings.
The initiative results in a higher number of outstanding shares, but the proportional ownership of each shareholder remains unchanged.
LuSE indicated that the record date, which determines which shareholders qualify to receive the bonus shares, will be communicated following shareholder approval at the December meeting.
The bonus share issue is expected to be completed within two months of board approval, pending regulatory clearance. This timeline aligns with standard corporate action procedures on the exchange and ensures a transparent transition process for investors.
Bonus share issues have become increasingly common in emerging markets as firms look to enhance liquidity, improve marketability of shares, and meet growing regulatory demands.
In Zambia, the initiative comes amid increasing interest in domestic capital markets, with investors paying closer attention to banking sector performance, profitability, and resilience strategies.
If approved, the bonus share issue will strengthen Standard Chartered Bank Zambia’s capital position ahead of what is expected to be an active year in the banking sector.
With rising digitisation, the growth of mobile financial services, and increasing regulatory oversight, banks remain under pressure to maintain efficient capital buffers.
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