Mkombozi Bank plans to raise capital by 5.8bn/-

Mkombozi Commercial Bank officially launched a rights issue sale that envisages raising its share capital by over 45 per cent from the current 12.7bn/- to 18.5bn/-.

The bank’s Executive Director, Edwina Lupembe said in Dar es Salaam that the first phase of the oneto- one rights issue started November 25, 2013 and will end on February 28, 2014.

During this first phase, existing shareholders will have an opportunity to buy one more share for every share they already own at the share price of 1,000/-.

“The sale of rights issue is part of the execution of the central bank’s directive to all commercial banks in the country to raise their capital from the statutory 5bn/- to 15bn/- by 2015,” Ms Lupembe told reporters at the bank’s headquarters.

She said during the second phase of the rights issue between March 1 and March 14, 2014, shareholders will have unlimited opportunity to acquire shares not taken up by fellow shareholders.

“All shareholders are invited to participate in the rights issue,” said the bank CEO, noting that apart from adhering to the central bank directive, the four-year old bank needs the money to finance the expansion of its operations with the views of opening a branch at least in every region.

The bank started operations in August 2009 and has since recorded impressive performance with its customers deposits growing to 48bn/-, while loan portfolio and bank assets soared to 27.6bn/- and 62.7bn/-, respectively, by the end of last month.

During the four-year period, the bank has opened four branches - three in Dar es Salaam and one in Mwanza. “The bank aims at opening branches and banking agency centres countrywide,” said Ms Lupembe.

Mkombozi bank is mainly owned by the Catholic Church, with the Tanzania Episcope Conference owning 24 per cent while the dioceses and catholic institutions have 29 and 13 per cent respectively. Individual shareholders control the remaining 34 per cent.
Source: Daily News, reported from Dar es Salaam, Tanzania
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