Jamii Bora back to market seeking Sh500 million in rights issue

Jamii Bora Bank Chief Executive Officer, Sam Kimani and Koto Housing Kenya Limited Chief Executive Officer Moses Nderitu during the MOU partnership today at Koto Housing Kenya offices in Mlolongo to provide affordable housing.PHOTO:JAMES WANZALA/STANDARD

Jamii Bora’s rights issue closes at the end of this month. The issue is a private placement – the technical term for an issue involving only a limited number of shareholders in raising capital.

The bank has previously raised over Sh2 billion through rights issues since 2012.

The latest move follows shareholders’ approval in the last Annual General Meeting in April to increase nominal capital by Sh5 billion through a combination of a rights issue, convertible debt and strategic investors.

“We expect to raise Sh500 million as part of our efforts to strengthen our capital base to support business growth,” said Group Chief Executive Sam Kimani (pictured right) in a statement.

Catalyst Fund I, managed by Catalyst Principal Partners LLC, Cornerstone Enterprises and Asterisks Holdings Ltd, who are significant shareholders in the bank, have committed to take up over 55 per cent of the rights issue.

In essence, Catalyst Principal Partners will be significantly raising its stake in the bank from the current 9.65 per cent.

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During April’s AGM, shareholders approved the creation of 30 million new ordinary shares and mandated the board of directors to increase paid up capital to the desired level within a five-year period.

“It is important for us to increase our capital base in line with shareholder approval to give us capacity to grow our loan book and increase customer deposits while also meeting our statutory ratios.

Part of the proceeds will also be invested in our new subsidiary, Jamii Bora Leasing Ltd (JBLL),” said Mr Kimani.

JBLL was incorporated last year.

 

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