Connect with us

General News

Consolidated Bank hunts for Sh3.5 billion capital injection :: Kenya

Published

on


Consolidated Bank wants a strategic investor to pump in Sh3.5 billion and take a controlling position in the bank.

The lender owned by the Government has a total share capital of 2.7 billion, out of this, Sh1.6 billion has been fully paid for by the present shareholders.

ALSO READ:

Rogue firms get leaner fines for abuse of rules

“On November 30, 2018, the shareholders at the recommendation of the Board of Directors of Consolidated Bank of Kenya (CBKL) approved a number of resolutions authorising the Directors of the Bank to allot up to Sh3.5 billion New Preference Shares to an Investor who is yet to be identified,” read a statement signed by the bank’s Chief Executive Thomas Kiyai.

“The Sh3.5 billion is targeted to address various requirements for CBKL as per our Compliance Strategy, Funding Strategy and Growth Strategy,” explained Kiyai.

The National Treasury is the bank’s majority shareholder with 77.9 per cent stake, in addition to a Sh500 million loan secured from the taxpayers’ purse.

The proposed capital injection, Mr Kiyai said, would help the bank shore up its capital base as it awaits planned implementation of a privatisation programme where it is listed as one of the 23 firms that the State plans to offload.

The recent shareholders’ loan helped the lender to stay at 20.8 per cent liquidity – just marginally above the 20 per cent minimum required set by the Central Bank of Kenya.

Your opinion is valuable. Take this quick survey to help us improve the website and content

The bank, however, posted a Sh404.9 million net loss for the period ending September 30 this year from Sh301 million loss recorded the previous year.

The Privatisation Commission has already appointed a transaction adviser for the struggling lender, which was formed from nine failed banks in 1989.

The nine included Jimba Credit Corporation, Union Bank of Kenya, Kenya Savings and Mortgages, Estate Finance Company of Kenya, Estate Building Society, Business Finance Company, Citizen Building Society, Nationwide Finance Company and Home Savings and Mortgages.

ALSO READ:

Listed companies disappoint Investors in the bourse

Would you like to get published on Standard Media websites? You can now email us breaking news, story ideas, human interest articles or interesting videos on:





Source link

Comments

comments

Facebook

Trending