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					For immediate release                                                                     3 August 2005


                  STANDARD CHARTERED BANK TANZANIA LIMITED
                             - ISSUE AND LISTING OF
           TZS 8 BILLION SUBORDINATED FLOATING RATE BONDS DUE 2015

Standard Chartered has announced the successful issuance and listing of a subordinated floating rate bond
issue (“Issue”) by its wholly owned subsidiary, Standard Chartered Bank Tanzania Limited. The Issue is
classified as lower Tier II subordinated debt capital in the amount of TZS 8 billion.
Approvals for the Issue were obtained from the domestic banking and capital market regulatory authorities,
comprising the Bank of Tanzania, the Capital Markets and Securities Authority and the Dar es Salaam Stock
Exchange.
This Issue has a final maturity of ten years and was priced at par, based on an initial coupon of 182-day
Treasury Bill+40bps, with a margin step up after the fifth year.
The Issue was fully subscribed by domestic institutional investors in Tanzania.
Breaking New Ground
This Issue represents the first time ever a subordinated debt instrument has been issued in the history of the
East African bond markets. The Issue is also notable for being the longest dated corporate bond issued and
listed on the stock exchange in Tanzania, and also across the East African region.
Subordinated Bond Instrument
Certain requirements needed to be fulfilled, from a regulatory perspective, in order for the Issue to qualify as
regulatory subordinated debt capital. Such requirements include, but are not limited to, the minimum maturity
period for the Bonds, the issuance of the Bonds on an unsecured basis, and the subordination of Bondholder
claims to those of certain other (senior) creditors.
The Issue, which is documented under the governing laws of the United Republic of Tanzania, represents
direct, unsecured and subordinated obligations of Standard Chartered Bank Tanzania Limited.


Hemen Shah, Chief Executive Officer and Managing Director of Standard Chartered Bank Tanzania Limited,
commented:
        "Standard Chartered prides itself as one of the largest and most active financiers to the corporate
        sector in Tanzania. This is the first time a commercial bank has accessed the bond markets in
        Tanzania and the successful execution of this issue reinforces our reputation in the market place as a
        pioneer in the development and introduction of innovative financial products. It also underlines our
        brand commitment to be the “Right Partner” to our clients. The proceeds of this issue will be used to
        support our ongoing provision of loans and advances for financing and investment activities in the
        economy.”
Commenting on the significance of the transaction, Nehemiah Kyando, Head of Global Markets and Co-Head,
Wholesale Bank Division of Standard Chartered Bank Tanzania Limited, said,
        "Through this issue, Standard Chartered has demonstrated its ability to make meaningful contributions
        towards the development of the local corporate bond market in Tanzania, in the dual role of both
        arranger and issuer. The transaction, which was well supported by the local institutional investor base,
        helps to provide pricing benchmarks for other banks and corporates seeking to access long-term
        capital via the local currency bond markets.”


Ade Adebajo, Director in Africa Fixed Income, Standard Chartered in London, further commented,
        "We are particularly pleased to establish a number of “firsts” in the local capital markets in Tanzania
        with an issue based on an innovative structure designed to meet and address regulatory capital
        requirements at both domestic level (with Bank of Tanzania) and on an international (Standard
        Chartered) group consolidated level (with the Financial Services Authority of the United Kingdom).
        This issue also reflects Standard Chartered’s ability to combine a strong and intimate knowledge of
        local market conditions with international best practice, to the overall benefit of the Tanzanian debt
        capital markets.”


                                                     - END -


NOTES TO EDITORS:
*Subordinated Debt
Banks employ liabilities and reserves (total capital) to fund their assets. The reserves also function as a buffer
against future losses and regulators therefore require that a minimum level of capital (from reserves) be set
aside against assets. Subordinated debt refers to one such form of capital that can be used to supplement
reserves and help meet the prescribed capital adequacy ratios.
Banks’ regulatory capital requirements, including the prescribed ratios of Tier I, II and III capital, and the
characteristics of qualifying securities which banks can issue to satisfy these requirements are generally
determined with reference to the guidelines set out in the 1988 Basel Accord and subsequent Basel
amendments. Many regulators in individual jurisdictions have adopted these guidelines as a move towards
international best practice.
Under the original 1988 Basel Accord and subsequent amendments, Tier II capital (also called “supplementary
capital”) is further divided into an Upper and Lower Tier, where Lower Tier II capital cannot exceed 50% of
total Tier II capital. Lower Tier II securities include fixed-term subordinated debt, a form of capital for banks,
which is available as a buffer against future unexpected losses arising from the normal course of banking
activities.
About Standard Chartered Bank Tanzania Limited
Established in 1992, Standard Chartered Bank Tanzania Limited is a wholly owned subsidiary within the
Standard Chartered PLC group. There are six branches of Standard Chartered in Tanzania, and collectively
these provide a wide variety of corporate, investment and consumer banking products and services to its
wholesale and retail client base in Tanzania. As at the year ended 31 December 2004, Standard Chartered
Bank Tanzania Limited was the largest provider of loans and advances in Tanzania.
About Standard Chartered’s Africa Fixed Income Group: The Africa Fixed Income Group was established
in 2002 to enhance the range of Capital Markets financing solutions offered to clients within sub-Sahara Africa
in both local currency and G3 hard currency. Based primarily in our London offices, the team leverages the
      s
Bank' on-the-ground presence in Africa, and its strong capital markets capabilities in these markets, to
arrange and distribute fixed income, asset-backed and future flow transactions for clients within both public
and private sectors.
Standard Chartered – Leading the way in Asia, Africa and the Middle East
Standard Chartered employs 38,000 people in over 950 locations in more than 50 countries in the Asia Pacific
Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. Standard Chartered is
one of the world’s most international banks, with employees representing 80 nationalities.

Standard Chartered PLC is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong
and is in the top 25 FTSE-100 companies, by market capitalisation.

It serves both Consumer and Wholesale Banking customers. Wholesale Banking provides corporate and
institutional clients with services in trade finance, cash management, lending securities services, foreign
exchange, debt capital markets and corporate finance.

This announcement appears as a matter of record only and is not, and should not be considered to be, a
solicitation, offer or invitation in any jurisdiction to purchase or otherwise invest in any securities.


For further information, please contact:

Ade Adebajo
Director
Africa Fixed Income
Standard Chartered Bank
Tel: +44 (0) 20 7280 7929
Email: Ade.Adebajo@uk.standardchartered.com

Nehemiah Kyando
Head of Global Markets & Co-Head, Wholesale Bank Division
Standard Chartered Bank Tanzania Limited
Tel: +255 (0) 22 2139824
Email: Nehemiah.Kyando@tz.standardchartered.com

Katherine Tan
Marketing Manager
Wholesale Banking
Standard Chartered Bank
Tel: +65-6331 5523
Email: tan.katherine@sg.standardchartered.com

				
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