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AfricaMoney | August 21, 2017

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Mauritius-based AfrAsia’s Zimbabwe unit seeks $100 million of fresh capital

Mauritius-based AfrAsia’s Zimbabwe unit seeks $100 million of fresh capital

This follows a shareholder approval on Friday June 27, 2014 to increase the company’s preference share capital, due to high demand. (Image: AfrAsia)

Two months after Mauritius’ financial services major AfrAsia Bank said it would inject $20 million (approx Rs 607.60 million) fresh capital into the group to meet capitalization requirements, AfrAsia Zimbabwe is now seeking to raise $100 million (approx Rs 3, 038 million) fresh capital.

This follows a shareholder approval on Friday June 27, 2014 to increase the company’s preference share capital, due to high demand.

AfrAsia board chairman Fungai Ruwende told shareholders at the company’s extraordinary general meeting in Harare that the group would seek to raise $100 million in fresh capital.

“There was heightened appetite from the market for preference shares as an alternative investment instrument, and committed capital has since been procured to take up the full $20 million worth of preference shares,” Ruwende said.

“From the road shows done by management, there was an expression of interest from shareholders and other potential investors to also participate under the preference shares programme,” she added.

Shareholders also voted to extend the period for the conclusion of repurchase of 289,133,648 AfrAsia shares worth $12.5 million from the group’s founding shareholder Nigel Chanakira’s Crustmoon, from the initial March 31 to a new September 30 deadline.

“The extension of the deadline was necessitated by the delays in fulfilment of certain conditions precedent to the implementation of the transaction,” said Ruwende.

At the beginning of this year, the central bank extended the deadline for the achievement of a $100 million minimum capital threshold for commercial banks to 2020.

Currently, minimum capital levels are $25 million for commercial banks.

Headquartered in the Mauritius International Financial Centre, AfrAsia Bank Limited is a boutique financial services provider with the ability to tailor innovative banking solution for both local and international markets.

AfrAsia Bank Mauritius took control of the former Kingdom Financial Holdings last year after buying out Chanakira and renamed it AfrAsia Zimbabwe Holdings.

The bank changed its name from Kingdom Bank to AfrAsia Bank Ltd and Kingdom Asset Management to AfrAsia Capital Management.

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