NAIROBI, Kenya, Sep 18 – World Bank’s investment arm, the International Finance Corporation (IFC), has released Sh3.6 billion to Britam for strategic projects.
This investment follows IFC’s 10.37 percent stake acquisition in Britam at Sh3.5 billion. The completion of the transaction, IFC will be entitled to appoint one director to sit in the Britam Holdings Plc board in accordance with Companies Articles of Association.
The funds will be used to consolidate gains from the group’s recent regional expansion initiatives, enhance distribution channels, support the roll out of new products, property development, and complete the on-going investment in the company’s new Information Technology system.
“Britam is pleased to announce for the benefit of its shareholders and the investing public that all stipulated conditions for the subscription have been fulfilled and accordingly, the Company and IFC are proceeding to complete the subscription,” said Dr. Benson Wairegi, Britam Holdings Plc Group Managing Director.
Dr. Wairegi said the release of the funds was a demonstration of confidence by the IFC in the company, adding that the partnership is expected to raise Britam’s profile internationally, while providing support in the areas of social impact, environmental standards, world-class management and technical skills support.
The partnership will also give Britam access to strategic, financial and investment advice, and knowledge sharing on strategic planning, business growth, and mergers.
As part of its expansion strategy in the region, Britam recently opened an asset management company in Uganda, with plans to open more offices in other countries in the near future.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. The institution offers investment, advisory, and asset management services to encourage development in the private sector.