Mufindi bank to ‘big’ success raise core capital

Mufindi Community Bank (MuCoBa) process of raising 5bn/- through initial public offer (IPO) to boost its core capital requirement starts on Monday.

The five-week offer, which ends in first week of September, has been endorsed by the Capital Markets and Securities Authority (CMSA).

The CMSA Public Relations Manager, Mr Charles Shirima, said the IPO mainly centre on meeting the central bank new directive for banks to increase their core capital requirement.

“The bank mainly wants to raise capital and diversify its shareholding to meet the new (Bank of Tanzania) directive,” Mr Shirima said.

The bank plans to list on the Dar es Salaam Stock Market alternative market --Enterprise Growth Market (EGM) -- on Monday October 5.

The IPO envisage to sell 20 million shares at 250/- each. 

The offer will increase the number of shares to 36,560,760. BoT has directed all banks, licensed before 2012 to increase their core capital ratios as per their levels of services.

The commercial banks ratio is 15bn/- and the deadline ended in March, while community banks ratio is 2.0bn/- and the deadline is 2017.

Others, merchant bank is 25bn/-, development finance institutions 50bn/- and microfinance banks 5.0bn/-.

MuCoBa operates from Mafinga in Mufindi District and has two branches at Igowole, Madibira and one in Iringa municipality.
Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania
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