, NAIROBI, Kenya, Sep 17 – Jamii Bora Bank has launched a Rights Issue targeting to raise Sh520 million.
The Rights Issue which will trade through private placement will see Jamii Bora issue 3.7 million new ordinary shares at Sh140 each.
The shares will be issued at the ratio of two new ordinary shares for every five ordinary shares held, with the Right Issue set to close on November 9.
“The purpose of the Rights Issue is to increase Jamii Bora Bank’s capital base to pave the way for the bank to expand and grow in the coming years in the process increasing shareholder value and reaching a wider market,” Jamii Bora Bank Chairman James Gacheru said.
The additional capital raised from the Rights Issue will go to funding asset growth and investment in the branch network and alternative channels in the country.
In a bid to attain mid-tier status, Jamii Bora will require Sh300 million in the next four years and an additional Sh200 million core capital to meet the Sh1 billion requirement set out by the Central Bank of Kenya.
The bank is targeting to grow its customer base from the current 366,000 customers to six million by 2018.
Asterisk Holdings Limited and Jamii Bora Scandinavia AB, whose total shareholding comprises 48.7 percent of the shares of Jamii Bora Bank, have indicated that they intend to take up their full Rights.
This will leave a minimum of 1,635,714 new shares worth Sh229 million, to be taken up and fully paid for in the Rights Issue to the Bank’s 582 shareholders.
“Our journey to profitability continues in earnest. We managed to record a profit before tax of Sh18 million as at June this year from a loss position of Sh37 million the previous year. We have turned around the business and embarked on a growth trajectory that will place us as a mid-tier player within the next two years,” Gacheru said.