AfrAsia Bank raises additional capital, while National Bank of Canada increases its shareholding in the bank to 17.5%
14 July 2015 - This increase in participation by NBC occurred following a rights issue launched and completed by AfrAsia Bank, which saw the bank raise additional capital of MUR 920m. This has further strengthened the bank’s capital base, positioning it for future growth and supporting its strategic expansion. Tier 1 Capital now stands at MUR 4.2bn, with a Capital Adequacy Ratio above 13.5%.
“This new investment evidences the trust of NBC in AfrAsia Bank’s ambitions and international expansion plans as we continue to build bridges between Africa and the world. Over the past eight years, we have been focusing on regional and international growth, while reinforcing our footprint through our representative offices in Johannesburg, Cape Town and London. This strategic deal with NBC creates long-term value for our shareholders and underpins the financial strength of the bank while we continue to pursue attractive growth opportunities,” said Maurice Lam, Chairman of AfrAsia Bank.
“The successful completion of the capital increase marks a decisive step in the continued expansion of AfrAsia Bank in the region and internationally, as it paves the way to exploit opportunities while further boosting profitability,” said James Benoit, CEO of AfrAsia Bank.
With economic growth in sub-Saharan Africa rising to 4.5% in 2014, Montreal-based National Bank of Canada said that the expansion into Africa is consistent with its strategy of boosting its international presence.
"Africa’s fast-growing and emerging economies offer unique business opportunities and AfrAsia Bank is well-positioned to benefit from this," explained Louis Vachon, President and Chief Executive Officer of National Bank of Canada. "We are proud of the partnership we forged in 2014, and by increasing our stake, we will be able to support AfrAsia Bank’s growth even more."
"AfrAsia Bank shares National Bank’s strong commitment to excellence and client satisfaction," said Karen Leggett, Chief Marketing Officer and Executive Vice-President, Corporate Development of National Bank of Canada. "We are also very familiar with the reality of organizations that have a diversified business model and a strong regional concentration. Our expertise and business networks will allow us to contribute to AfrAsia’s commercial and strategic development."
AfrAsia Bank has just closed its financial year on 30 June 2015, with total assets of MUR 73bn compared to MUR 47bn last year. Deposits have increased by 60% from MUR 41bn to MUR 66bn, while Total Operating Income has exceeded MUR 1.5bn, compared to MUR 1.2bn for the previous financial year.
Following this latest capital raising and rights issue, AfrAsia Bank’s major shareholders now stand as follows: GML Investissement Ltée (24.10%), National Bank of Canada (17.5%), Intrasia Capital Pte Ltd (10.44%) and PROPARCO (9.03%).
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