Investec Plc (INL) increased the size of a loan it will sign this week by 50 percent to 180 million pounds ($279 million) after lenders offered more money than was sought, according to a person with direct knowledge of the deal.
The three-year term loan, which will be used for general corporate purposes at London-based Investec Bank Plc, was arranged by Lloyds Banking Group Plc and attracted 13 lenders to the syndicate, said the person, who asked not to be identified as the terms are private. The deal is expected to sign tomorrow.
The bank will pay interest of 200 basis points, or 2 percentage points, more than the London interbank offered rate on the debt, according to data compiled by Bloomberg. The loan will be repaid in three equal installments starting two years after it’s signed, the person said.
Investec, founded in South Africa in 1974 and listed in London since 2002, reported on May 17 a 41 percent drop in full- year profit after costs rose and trading income slumped amid Europe’s debt crisis. Investec rose 1 percent to 385.5 pence at 10 a.m. in London, extending its yearly gain to 14 percent and boosting its market value to 3.4 billion pounds.
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