S. African Standard Bank unit plans Zambia listing

By Shapi Shacinda

LUSAKA, July 23 Reuters) - A subsidiary of South Africa's Standard Bank (SBKJ.J) plans to list on the Lusaka stock exchange and provide financing to Chinese firms investing mainly in Zambia's copper and cobalt mines, officials said on Wednesday.

Stanbic Bank Zambia Ltd said it was positioning itself to be the major financier of Chinese firms that are investing in the mineral-rich country's Chambishi economic zone, where they get tax breaks.

Zambia is waiving customs duty and value added tax on imported equipment and numerous other taxes for Chinese firms, which plan an initial $900 million investments in its economic zone. A $250 million copper smelter is currently under construction there.

"Stanbic is moving to position itself as the market leader because the bank is in a very strong position. I know that over time shareholders will attempt to dilute their shareholding and that will happen through the Lusaka Stock Exchange," said Stanbic Bank Zambia Ltd's new managing director, Joseph Chikolwa.

Chikolwa said Stanbic Bank's listing would follow Zambia National Commercial Bank, a unit of Netherlands' Rabobank [RABN.UL], which will be the first bank to be listed on the Lusaka Stock Exchange in September.

"Zanaco has taken that route (to list) and that is the lane we will be taking. In our next strategic plan for up to 2011, we will have a proposal for listing," Chikolwa told Reuters, but he gave no timeline.

He said the bank had identified 300 Chinese firms which have registered in Zambia and that it planned to propose meetings with the investors to agree on financing deals for their projects in copper mining, agriculture and other economic areas in Zambia.

Chikolwa said Stanbic Bank would be well-positioned to support Chinese firms because of its relationship with the Industrial and Commercial Bank of China (ICBC) (1398.HK).