Zachary Ochuodho @zachuodho
Bank of Kigali Group Plc is set to cross-list today at the Nairobi Securities Exchange (NSE) barely six months after the Capital Markets Authority (CMA) approved the listings.
The bank, which was listed on the Rwanda Stock Exchange (RSE) in 2011 through an Initial Public Offering, is owned by Bank of Kigali Plc, BK Insurance, BK Capital and BKTecHouse.The bank’s largest shareholders are Government of Rwanda (29.5 per cent), Rwanda Social security Board (25.1 per cent) and International Institutional Investors (14 per cent).
According to a memorandum submitted to CMA, the bank plans to undertake a rights issue on the Rwanda Stock Exchange (RSE) primarily to raise $70 million (Sh7 billion) from a rights issue to fund its expansion.
The proceeds will ensure that subsidiaries, and in particular Bank of Kigali Plc, are adequately capitalised to comply with capital adequacy requirements and implement its growth strategy.
Speaking in May this year after CMA had approved the request to cross-list on the NSE, Paul Muthaura, CMA chief executive officer, said the cross-listing fosters the development of East African Community single market in financial services.
Muthaura, who is also the chairman of the East African Securities Regulatory Authority said cross-listing will facilitate cross-border investments, apart from strengthening the agreement inked by capital markets regulators in Kenya, Uganda, Tanzania, Rwanda and Burundi.