Standard Chartered to acquire Barclays' Kenya custodial operations

Jun 01, 2010

Standard Chartered is to introduce a rights issue in order to raise the funds to purchase Barclays Bank's custodial business in Kenya.

The bank will pay 1.88 billion Kenyan shillings (€19.37 million) for Barclay's operations, a move that is part of a wider acquisitions initiative across Africa that Standard Chartered hopes will boost its operations on the continent.

Richard Etemesi, Chief Executive of the firm, said the move has been driven by demand from Asian investors looking to generate returns from the African market.

"One rationale behind the acquisition of the custody business is to give our Asian customers opportunity to invest in African capital markets, of which Kenya is the largest," he explained.

Earlier this month, Standard Chartered had reportedly expressed an interest in purchasing Old Mutual's stake in South Africa's Nedbank.

And Mr Etemesi revealed the bank has other acquisitions lined up, stating it will turn its attention to "eight other countries" once the Barclays deal has been finalised, Reuters reports.