adminconcludes a major recapitalisation by Kingdom, will provide the group with the financial muscle to take advantage of existing and emerging growth opportunities in the Zimbabwean economy and selected regional markets.
It also opens further access to lines of credit and deal flows which will enable Kingdom Bank Limited, the flagship banking subsidiary, to expand its revenue base, introduce new products and services and further grow its domestic market share.
Kingdom chairman Ms Sibusisiwe Bango said AfrAsia’s investment was one of the most significant developments in the history of the bank since its formation more than 15 years ago. She added that the investment demonstrates the Mauritian bank’s confidence in the Kingdom brand and its businesses.
She also said the equity injection also completes a major exercise to recapitalise Kingdom, under which Kingdom was raising a total of US$25 million, comprising US$15 million equity and US$10 million debt finance.
“We are glad that as a result of these initiatives, Kingdom Bank is now recapitalised and has achieved this target well ahead of the regulatory deadline that we had been given by the Reserve Bank of Zimbabwe,” Ms Bango said.
“Kingdom sees AfrAsia as a key strategic investor and shareholder whose decision to share in our vision is an important milestone in the history of Kingdom. Our plans to expand in Zimbabwe and the region have therefore been given a major boost and accelerated momentum.”
Ms Bango said it has been both a challenging and exciting journey in seeking a partner who has the same vision and entrepreneurial approach to business, and who can add value to the business of Kingdom.
“In AfrAsia, I am glad to say we have found such a partner and we have a shared meeting of minds, which, together with this important investment, can only be beneficial to both Kingdom and AfrAsia. On behalf of the board, shareholders, customers, staff and management, we are humbled by the commitment that has been made by AfrAsia and other investors who supported our capital raising exercise.
“The challenge is for our management and staff to ensure that we accelerate the strategic growth initiatives that we have already outlined to our shareholders. Kingdom will never be the same again and our ultimate goal of a global listing remains unchanged,” she said.
Kingdom’ group chief executive, Mrs Lynn Mukonoweshuro said: “This is a momentous and important occasion for us as we embark on a new future in the history of Kingdom.
“The past few years have been challenging but by God’s grace, through the continued loyalty of our customers and the support of the relevant stakeholders, including our regulator, we have persevered.
“Kingdom will face the future with renewed resilience of achieving the strategic objectives of growing our business and regaining market confidence in our brand which will result in improved access to lines of credit and deal flows.”
Online Reporter