HomeNewsKFHL seeks $200 million

KFHL seeks $200 million

-

Kingdom Financial Holdings Limited (KFHL) shareholders have approved plans to raise a whopping $200m in offshore lines of credit and debt capital to further capitalise the group.

KFHL plans to raise $50m through an issuance of redeemable debt securities and $150m in offshore lines for its operations.

Shareholders also approved the renaming of the group to AfrAsia-Kingdom (Zimbabwe) Limited following the establishment of a partnership with the AfrAsia Bank Limited Group.

The Mauritian company recently acquired 35% after an equity injection of $9,5m into the bank.
AfrAsia Bank representatives James Benoit, Kamben Padayach and journalist cum-businessman Sure Kamhunga were appointed onto the board.

The change of the name will be effected as soon as the outstanding regulatory notifications have been made.

KFHL chairperson Sibusisiwe Bango said it had become imperative the group embarks on raising a significant amount to capitalise its businesses.
She said the additional capital would strengthen the capital adequacy of its largest subsidiary Kingdom Bank Limited (KBL).

“KBL is currently unable to fund a strong deal pipeline due to the liquidity constraints that characterise the Zimbabwean market since the dollarisation of the economy in 2009,” Bango said.

“Enhanced liquidity through more deposits, along with the term funding provided by the debt capital and as well as lines of credit, will allow KBL to grow its loan book and underwrite new business and promote general corporate expansion in line with the group’s growth strategy.”

She said the relisting of Kingdom was intricately linked to the conclusion of the ongoing capital raising initiative aimed at shoring up the group’s balance sheet.

“It is the board’s considered view that listing should happen once the company is on a stronger financial footing so as to preserve shareholders’ value,” she said.

Recent Posts

Stories you will enjoy

Recommended reading