Language version

Business

#COVID-19 Rips Apart Planned Merger Of Equity Bank Rwanda And BPR

Advertisement

Published

on

#COVID-19 pandemic is the main culprit that has served to rip apart the planned merger of Equity Bank Rwanda and BPR.

The highly anticipated merger deal between Equity Bank Rwanda and BPR was in the works for the last two years.

In the collapsed deal, Equity Bank Rwanda was on course to merge with Atlas Mara BPR.

Equity Bank Rwanda would have emerged a bigger player in the market with assets in excess of US$450 million. That would have made it the second-largest commercial bank in terms of assets over taking I&M Bank Rwanda the former BCR that currently has US$233 million in assets.

The third major implication is that the consolidated Equity Bank Rwanda would emerge as a brand with the largest branch footprint in Rwanda overtaking market leader Bank of Kigali (BK).

The announcement terminating the merger was announced by Equity Bank Rwanda’s parent company- leading Kenyan lender Equity Group in a statement on Monday, June 22, by the firm’s executive director Mary Wangari Wamae.

“After careful consideration, Equity Group and Atlas Mara have mutually agreed to discontinue discussions on the proposed transaction or a variant of it for the foreseeable future,” the statement reads in part.

Hannington Namara CEO of Equity Bank Rwanda in a brief statement to Taarifa said: “The deal with Atlas Mara is officially off. We are looking at other opportunities.”

The termination of the consolidation deal was eagerly awaited by the industry’s top captains and stakeholders as it was meant to intensify competition in the sector in a number of ways.

BPR owned by Atlas Mara Group is Rwanda’s largest bank in terms of its 200 bank network with over 100 ATMs. It employs over 100 staff giving it the most significant footprint in the local commercial banking sector.

It is worth noting that BPR was overtaken by BK in the banking sector realignments that took place in the last 10 years.

BK’s presence in the market stands at more than 79 branches, 100 ATMs, and more than 1,400 agents, 06 mobile vans, and over 1200 staff.

Part of major reforms happening within Rwanda’s banking sector is the need by licensed operators in the next five years to significantly increase core capital to US$21 million from US$5 million.

This is what partly informed the collapsed merger deal.

The local banking sector without a doubt is one of the most vibrant in the Rwandan economy.

The Finscope survey states that opportunities in the local banking sector are still vast. Out of more than four million adult Rwandans, less than 1.5 million use banking services with less than 100,000 Rwandans exclusively relying on commercial banks to do business.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Rwanda’s Energy Firm Issues US$6.5M Corporate Bond On RSE

Published

on

ENERGICOTEL “ECTL” PLC, a Rwandan based Independent Power Producer (IPP) and an Engineering
Consulting Company is expected to issue and list its Corporate Bond on the Rwanda Stock Exchange (RSE) on Monday, July 26, 2021.

The company’s Executive Director, Ferdy Turasenga, told Taarifa on Thursday evening that the firm has secured regulatory approval from the Capital Market Authority (CMA) and Rwanda Stock Exchange (RSE).

Corporate Bond listing and trading is also slated to commence on July 26.

The proceeds of the Bond, according to ENERGICOTEL “ECTL” PLC, will be used for general corporate purposes, including but not limited to refinancing the company’s existing bank loan, investment into operational power plants and bond issuance related expenses.

The listing is expected to further showcase the Rwanda Stock Market as an avenue for generating long term financing for project development from local and international institutional and retail investors.

“This is part of a wider program that we have embarked on in partnership with the Capital Market Authority (CMA) and other stakeholders which is key in assisting SMEs to explore available financing opportunities in the capital market,” said Jean Bosco Iyacu, CEO, Access to Finance Rwanda.

He added that, “This will play a vital role in accelerating Rwanda’s inclusive economic growth both in the creation and expansion of investments and descent jobs opportunities.”

Rwanda’s demand for electricity is projected to increase according to the Energy Sector Strategic Plan.

Currently, electricity penetration in Rwanda is at 63%, with 47% connected to the national grid and
16% accessing electricity through off-grid systems.

The Energy Sector Strategic Plan (ESSP) for 2018/19
– 2023/24 outlines that the Government targets to achieve 100% penetration by 2024 with 52% being
connected to the grid and 48% through off grid solutions.

Generally, this spells out good and sustainable
business for investors (IPPs) like ENERGICOTEL “ECTL” PLC.

About ENERGICOTEL “ECTL” PLC
ENERGICOTEL “ECTL” PLC is an Independent Power Producer (IPP) and an Engineering Consulting
Company with Power Purchase Agreements and Concessions to upgrade, finance, operate and maintain
power plants in Africa. Currently, ECTL operates 3 Hydro Power Plants namely: Keya, Nkora & Cyimbili
in the Republic of Rwanda. With a consistent capital outlay, now totaling to over FRw 4Billion,
ENERGICOTEL “ECTL” PLC has transformed the Hydro Power Plants (HPPs) to a combined installed
capacity of 3.2MW and supplied 17M kWh of electricity to the national grid in 2020.

Ferdy Turasenga

Given the potential energy resources which are under development in the region, ECTL looks to the
future of energy with great hope to exploit the opportunity presented in the region and beyond.
In the pipeline, ENERGICOTEL “ECTL” PLC has various energy power generation projects, all in the
Renewable Energy Space, at different stages of the project development cycle of approximately 50MW
of Power Generation including the Methane Gas-to-Power Pilot Project in Lake Kivu, a Hydro-power Project in Kenya, DRC, and Solar Power Plant in Zimbabwe and so on in Malawi.

Continue Reading

Business

Ecobank Transnational Incorporated Lists On LSE For US$350M

Published

on

Ecobank Transnational Incorporated (“ETI”), the Lomé based parent company of the Ecobank Group (www.Ecobank.com), was hosted today by the London Stock Exchange for a market opening virtual ceremony to celebrate the successful listing of the Tier 2 Sustainability Notes on the London Stock Exchange (LSE) main market.

This represents the first ever Tier 2 Sustainability Notes by a financial institution in Sub-Saharan Africa.

This Tier 2 issuance is the first to have a Basel III-compliant 10NC5 structure outside of South Africa in 144A/RegS format and is now listed on the main market of the London Stock Exchange.

The bond, which matures in June 2031, has a call option in June 2026 and was issued with a coupon of 8.75% with interest payable semi-annually in arrears.

An equivalent amount of the net proceeds from the notes will be used by ETI to finance or re-finance, new or existing eligible assets as described in ETI’s Sustainable Finance Framework, available at https://bit.ly/3j4xrlb on which DNV issued a Second Party Opinion.

Investor interest for this Sophomore Eurobond issue was global, including United Kingdom, United States, Europe, the Middle East, Asia and Africa, achieving a 3.6x oversubscribed orderbook, of over US$1.3 billion at its peak.

Ade Ayeyemi, Group Chief Executive Officer of ETI, stated: “The strong global interest in our issuance reflects investors’ confidence in Ecobank’s strategy and our commitment to sustainable financing. We thank the LSE for hosting ETI today and look forward to value creation for all our stakeholders. ”

The Joint Lead Managers and Bookrunners in the transaction were Citi, Mashreq, Renaissance Capital and Standard Chartered Bank.

Continue Reading

Business

Botswana Finds Another Diamond Larger than 1000ct

Published

on

Botswana has delivered another diamond at 1 174.76 ct from Karowe mine a producer of high-quality rough diamonds.

It is the third diamond weighing more than 1,000 ct to be recovered from the South Lobe of the AK6 kimberlite since 2015.

In recent years, Lucara had recovered the 1,758 ct Sewelô and the 1,109 ct Lesedi La Rona diamonds from the South Lobe.

Lucara’s latest find also follows hot on the heels of the recovery of a 1,098 ct diamond by Debswana at its Jwaneng mine, in Botswana.

When Debswana announced the find on June 16, that diamond was said to be the world’s third-largest.

The 3,106 ct Cullinan diamond recovered in South Africa in 1905 is the largest diamond ever to be recovered.

“Lucara is delighted to be reporting another historic diamond recovery and its third diamond over 1,000 ct – a world record for Karowe.

“Although complex, these diamond recoveries do contain large domains of top-colour white gems that will be transformed through our partnership with HB Antwerp into valuable collections of top-colour polished diamonds, very much in high demand in the market today,” comments Lucara CEO Eira Thomas.

Lucara notes that the 1,174 ct diamond was recovered in the Mega Diamond Recovery XRT circuit at Karowe.

“On the same production day, several other diamonds of similar appearance – a 471 ct, a 218 ct and a 159 ct – were recovered at the main XRT circuit, indicating the 1,174 ct diamond was part of a larger diamond with an estimated weight of more than 2,000 ct,” the company points out.

Continue Reading
Advertisement

Canal+ Advert

Canal+ Advert
Advertisement
Advertisement
Advertisement

Trending