AFRASIA Kingdom Holdings Limited (AKHL) has secured $10 million from its Mauritian- based partner to provide lines of credit for on lending to its customers. Report by Victoria Mtomba Business Reporter
In January last year, Kingdom Financial Holdings Limited sealed a $9,5 million deal with AfrAsia Bank Limited (ABL) resulting in the latter gaining a 35% stake in the group.
ABL is a financial institution that offers corporate and investment banking, private banking and wealth management and international banking solutions.
AKHL group chief executive officer Lynn Mukonoweshuro told NewsDay this week that the coming on board of new shareholders had been positive for the group.
She said it had also sent a message that the country was a good investment destination.
“AKHL is now strategically positioned to attract further capital which will come in handy in our desire to meet the phased new capital requirements.
“ABL has additionally assisted us with a $10 million line of credit for our clients to enjoy and the nation to benefit from,” Mukonoweshuro said.
She said the capital injection by ABL last year had enhanced the company’s balance sheet to underwrite new business.
Mukonoweshuro added that the bank had submitted its capitalisation plan to the Reserve bank of Zimbabwe.
“The group has submitted its capitalisation plans to the Reserve Bank and is therefore unable to comment any further,” she said.
The central bank governor announced a phased recapitalisation exercise for the financial services sector which is expected to be concluded by June 2014.
Shareholders are expected to increase that threshold to 75% by year end before fully complying.
Mukonoweshuro said the partnership had increased the company’s exposure in skills base in the form of new board members.
She said the group was eyeing opportunities in the economy to become a major player on the market. For the half year to June 30 2012 group balance sheet stood at $186 million due to the lower cost of funding for the loan book.
