Mauritius’ AfrAsia set to invest $9,5m in Kingdon

raise the money through a rights issue, private placement and public offering.
A rights issue last year raised $2,8 million.
In a statement, KFHL said the group had agreed to terms with AfrAsia to invest in the group and approval by most regulatory authorities had been granted.
“Kingdom and AfrAsia Bank Limited have reached an agreement in terms of which AfrAsia will invest $9,5 million in Kingdom (35 percent stake). Kingdom has received approvals from the Ministry of Finance, the Exchange Control and the Bank Licensing, Supervision and Surveillance Divisions of the Reserve Bank of Zimbabwe, and the Ministry of Youth, Indigenisation and Empowerment. Kingdom is working towards securing the few outstanding approvals which the bank is confident will be granted,” said the statement.
Following the investment by AfrAsia, Kingdom has now raised $11,3 million from its recapitalisation initiatives after the $2,8 million from last year’s rights issue.
The bank said the injection from AfrAsia and the proceeds from the rights issue would be used to recapitalise Kingdom Bank Limited. This would see the bank meeting the central bank’s minimum capital requirements.
Kingdom Bank Limited fell short of the central bank’s minimum capital requirements after the acrimonious demerger with Meikles Africa Limited.
KFHL said Mauritius was becoming an important market for international capital seeking opportunities in Africa.
AfrAsia was launched in 2007 and the main shareholder is Groupe Mon Loisir (GML) while regional strategic partners include Dale Capital Group of South Africa, Intrasia Capital of Singapore and PROPARCO, a subsidiary of the French Development Agency.
GML is the largest conglomerate in Mauritius and was formed in 1939. It is a diversified group with stakes in companies operating in the main pillars of the Mauritian economy: sugar, commerce, industry, financial services, financial holding, hospitality, and property development. The group employs over 10 000 persons and contributes to about 9,1 percent of the Mauritian Gross Domestic Product.