PE firm Catalyst raises stake in Jamii Bora to 11pc
Catalyst Principal Partners chief executive Paul Kavuma. PHOTO | FILE
Private equity firm Catalyst Principal Partners has raised its stake in Jamii Bora Bank to 11 per cent, nearly three times its initial investment.
Catalyst first bought into the bank through a rights issue in December last year, snapping up a 4.4 per cent stake in the mid-tier lender.
The private equity firm has been buying more shares through the over-the-counter (OTC) market and has consequently got a seat on the bank’s board.
“The investment demonstrates our confidence in Jamii Bora Bank, which has a strong management team capable of delivering the company’s ambitious transformation strategy,” said Catalyst chief executive Paul Kavuma, who now sits on the bank’s board.
Other large investors include the Swedish funds Jamii Bora Scandinavia AB and Nordic Microcap. Foreign investors now have a 37 per cent stake in the bank.
Jamii Bora plans to raise Sh5 billion through a corporate bond and a rights issue that will seek a strategic investor to inject funds into the lender.
The bank has been on a capital raising spree which has seen it issue a five-year convertible bond of Sh1 billion and undergo two rights issues since 2011.
By the end of last year Jamii Bora had a core capital of Sh2.4 billion.
The lender is also the largest investor in Uchumi Supermarkets with a 15.8 per cent stake.
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