New era dawns for Kingdom

group was steady prior to AfrAsia’s US$9,5 million investment of a 35 percent stake, the deal has set Kingdom for exciting times ahead, as fresh capital would enhance its balance sheet.
The investment was directed into Kingdom Bank to meet the Reserve Bank’s US$12,5 million minimum capital threshold for commercial banks.
This complemented the US$2,8 million rights offer proceeds that had already been invested to meet regulatory capital requirements.
More benefits would stem from improved access to affordable funding through Mauritius, now a renowned international financial centre.
Kingdom founder and non-executive director Mr Nigel Chanakira said AfrAsia would help the bank raise debt finance by June. In line with regulatory requirements on owner-managed shareholding in financial institutions, Mr Chanakira’s stake will be cut to 25 percent from 33 percent. “This transaction will open new channels for much needed capital, lines of credit and deal flows for our loyal client base.
“I am excited about the prospects that are beckoning on the horizon,” said Mr Chanakira.
Last year, Kingdom went on a charm offensive to raise US$25 million capital, with US$15 million being equity capital and US$10 million debt finance.
The founding director said after the debt finance has been secured, Kingdom would reconsider whether to relist on the Zimbabwe Stock Exchange.
He said the return to the ZSE could be done simultaneously with a secondary listing on the Johannesburg Stock Exchange, but only when the firm was financially strong to preserve value. By June, said Mr Chanakira, Kingdom expected to have raised US$10 million through a debt instrument, preferably, preference shares.
AfrAsia head of global banking Mr Ben Padayachy said the partnership would position Kingdom well for access to external lines of credit.
“Mauritius is now an international financial centre and that will be key in positioning the bank and the country as destinations for foreign direct investment,” said Mr Padayachy. AfrAsia chief executive Mr James Benoit said the business model of Kingdom and the various products under its portfolio had impressed his bank.
Mr Benoit said the interest arising from Africa as one of the last frontier markets, presented a good platform to tap into new opportunities.
“It is a very well-run bank, exciting products and very exciting business model. The quality of the banking is something quite attractive to us,” he said. 
Mr Benoit said AfrAsia would complement retail banking products currently offered by the Kingdom group with trade, corporate, private finance and international banking, making services supported by a strong brand and liquidity.
AfrAsia has a capital base of US$90 million and assets worth over US$700 million, giving it huge muscle to raise fresh capital to support its investments.
Kingdom is also set for major rebranding and the local holding company will soon be renamed AfrAsia Kingdom Zimbabwe Limited.
Chief executive Mrs Lynn Mukonoweshuro said the financial, technical and product expansion to come from the partnership with AfrAsia will enable Kingdom to reclaim its position in the sector in terms of market share.
“We used to control about 9 percent of the market before we came down, and with this we need to go back to the levels again,” she  said.