AfrAsia Bank Ltd, has reached an agreement to invest a 35 per cent equity stake in Zimbabwes Kingdom Financial Holdings Ltd valued at US$9.5mn
According to Daniel Makono, Kingdom Group Company Secretary, his company has been pursuing recapitalisation initiatives to raise US$25mn, comprising US$15mn equity and US$10mn debt finance.
"The equity capital is largely required to recapitalise Kingdom Bank Ltd, the flagship banking subsidiary in the Kingdom stable," Makono says.
AfrAsia is a rapidly growing banking group based in Mauritius. Mauritius has become an increasingly important market for international capital seeking opportunities in Africa.
"The investment by AfrAsia and the US$2.8mn raised through the rights issue will be used to recapitalise Kingdom Bank Ltd, which together with the existing capital will result in Kingdom bank having core capital in excess of the minimum capital requirements set by the Reserve Bank of Zimbabwe," said Makono.
Wallace Mawire
