TETRAD Holdings Limited has secured a partner to take a majority stake in Tetrad Investment Bank Limited.
In a cautionary statement published yesterday, the company said a meeting would be convened in accordance with the provisions of the Articles of Association and the Companies Act.
“The investor will inject new capital into Tetrad Investment Bank Limited, creating a strong foundation for the institution going forward,” the company said.
Sources close to the deal said an agreement with a new investor had already been signed, but it was subject to regulatory and shareholder approvals.
“The investor will be bringing in an amount more than enough to capitalise the bank, in accordance with the minimum capital requirements stipulated by the Reserve Bank. This will protect the depositor’s interest and provide adequate liquidity to the bank,” the source said.
The sources said the transaction would increase shareholder value.
Tetrad Investment Bank was borne out of Tetrad Securities Limited, Zimbabwe’s largest discount house registered in 1996.
In 2009 Tetrad Securities Limited was granted a merchant banking licence by the central bank and became Tetrad Investment Bank.
Capital requirements for commercial and merchant banks remain at $25 million, while that for building societies stands at
$20 million and $15 million for discount and finance houses.
Commercial and merchant banks are expected to reach $100 million minimum capital requirements by 2020.
Reserve Bank acting governor Charity Dhliwayo said all banking institutions were now required to submit to the central bank comprehensive recapitalisation plans to meet the new minimum capital levels by the June 30 2014 deadline.
“As such, the Reserve Bank will monitor and evaluate progress made by banks towards attainment of capital milestones as outlined in their respective recapitalisation plans,” Dhliwayo said.