I&M Bank Rwanda’s trading of its Rights Issue shares recorded an oversubscription of 12 percent translating to KSh887.4 million.
In a statement, Faida Securities Rwanda and I&M Burbidge Capital, the Joint Lead Transaction Advisors, the Rights Issue was undertaken to secure long-term funding to accelerate investment in technological platforms and bolster the Bank’s Tier 1 Capital Adequacy Ratio.
Ms. Rina Hicks, Chief Operations Officer at Faida Securities Rwanda an associate company of Faida Investment Bank said, “We believe that going forward, growth will be driven by the Bank’s current strategy which largely focuses on increasing their MSME offering and leveraging digital banking to enhance efficiency and revenue diversification.”
“The performance of this rights issue has been reassuring in a difficult year, and goes to show the increasing growth of the Rwandan Capital Markets and the confidence shareholders have in the future growth prospects of I&M Bank Rwanda and the Rwandan economy.”
Ms. Gauri Gupta, Director at I&M Burbidge Capital, said “The highly successful outcome is a testament to the professional approach of the advisory teams as well as I&M Bank’s fantastic performance record and reputation in the market.”
The rights issue offer opened on September 25th presenting an opportunity for current shareholders to increase their stake in the company which has grown steadily over the past five years. It ended on the 16th of October.
A total of 202,000,000 new shares were issued.
Robin Bairstow, the Bank’s Managing Director disclosed that the funds will be used to automate the bank’s processes.
“The capital sought aims to provide long-term funding for sustainable business growth and funding for investment in the Bank’s technological platforms for enhanced customer service,” he said.
In March 2017 the Bank’s ownership was expanded after a successful Offer for Sale which was oversubscribed by 209%.