Mauritius company acquires 35% of Zim's Kingdom

AfrAsia bank Ltd, a rapidly growing banking group in Mauritius, has reached an agreement to invest a 35% equity stake in Zimbabwe's kingdom Financial Holdings Ltd valued at $9,5m.

According to Daniel Makono, Kingdom Group Company Secretary, his company has been pursuing recapitalisation initiatives to raise $25m, comprising $15m equity and $10m debt finance.

"The equity capital is largely required to recapitalise Kingdom bank Ltd, the flagship banking subsidiary in the Kingdom stable," Makono says.

Mauritius has become an increasingly important market for international capital seeking opportunities in Africa.

"The investment by AfrAsia and the $2,8m 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," Makono says.

Post published in: Business

Leave a Reply

Your email address will not be published. Required fields are marked *