I&M Bank buys 80 pc stake in Rwandan bank
Posted Wednesday, July 18 2012 at 12:33
Actis acquired an 80 pc interest in Rwandan Bank in a 2004 privatisation, with the remaining 20 pc interest retained by the Government of Rwanda.
When Actis invested, Rwanda was a post-conflict economy; it is now an attractive investment destination.
Current Actis investments in East Africa include Ugandan electricity distributor, Umeme, and bank, DFCU; Kenyan power generator, Tsavo, as well as a suite of real estate investments including Nairobi Business Park, and Capital Properties in Dar es Salaam.
Kenyan regional bank, I&M Bank Limited ('I&M') and its principal shareholders-- Proparco and DEG—have bought an 80 per cent stake in Rwandan bank from PE fund Actis for undisclosed price.
Actis bought the 80 per cent stake Banque Commerciale du Rwanda, Rwanda’s second-largest bank, when it privatised in 2004.
The government of Rwanda owns the remaining 20 per cent stake.
"The successful equity exit of Actis reflects the investment opportunities that the Rwandan Government has helped foster,”” said John Rwangombwa, Rwanda's Minister of Finance and Economic Planning.
In Rwanda, I&M Bank will join Kenya’s lenders Equity Bank, KCB and Fina Bank that have spread their operations to Rwanda in recent years.
PROPARCO of France and DEG of Germany own 21.7 per cent of I&M Bank—which has operations in Mauritius and Tanzania.