Maendeleo Bank hits the ground running

The Maendeleo Bank has managed to register over 500 customers since it opened its doors less than a month ago. 

The bank envisages reaching more customers using alternative financial services apart from brick and mortar branches.

“We are so much pleased with the number of customers registered. This indicates that the bank has been received very well in the market,” the Maendeleo Bank Managing Director, Mr Ibrahim Mwangalaba, said in a statement yesterday.

“The growth of the banking sector is a positive sign in building a strong economy and promotes sources of capital for entrepreneurs.” Tanzania has so far more than 50 banks providing services.

The bank, with a single branch in Dar’s central business district, was established with the main aim of empowering people to improve economically, build a culture of saving and easily access banking services.

The bank also called to its customers and general public to acquire its shares through the ongoing initial primary offer prior to its listing on Dar es Salaam Stock Exchange’s second segment—Enterprise Growth Market.

“This shows how the bank has positioned itself to provide excellent service of international standards,” Mr Mwangalaba said, “we advise all Tanzanians to buy shares to become part owners of the bank.”

The Maendeleo Bank becomes the first product of EGM after putting eight-million shares on primary sales with a green-shoe option. The offers opened mid August and expected to close mid this month while a share is sold at 500/- but at a-lot of 100 shares or in multiple of 10.

According to the prospectus for the IPO has been approved by the Regulator, Capital Market and securities authority and Dar es Salaam Stock Exchange (DSE) for admission of the issued shares. 

“The expected listing date (at DSE) is 21st October 2013… no commissions are charged to applicants,” Tanzania Securities, a stock brokerage firm, said in the release.

The green-shoe is an agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer. The case of Maendeleo the option is to sell 1,200,000 more shares. “The option provides stability and liquidity to a public offering,” said a stockbroker.

Maendeleo Bank is a public limited liability company incorporated in 2011, with head offices at Luther House in Dar es Salaam. 

The bank’s financial plan is projected to make profit in its third year of 288.6m/- and increase to 776.7m/- in its fourth year of operation.

The current shareholders holding, above 5 per cent are United Evangelical Mission 14.5 per cent, ELCT - Eastern and Coastal Diocese 9.2 per cent and Church Institutions 7.7 per cent.
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania
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