Companies

Jamii Bora targets investors with creation of new shares

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Jamii Bora Bank has a customer base of 360,000. file photo | nmg

Jamii Bora Bank shareholders have approved the creation of 30 million new ordinary shares that will be used to raise the bank’s capital through seeking out a strategic investor, undertaking a rights issue or converting debt over the next five years.

“It is our vision to make Jamii Bora a strong mid-tier bank in the future and this new capital level creates room for us to grow to that desired position and make the bank a competitive player in the country’s financial sector,” said Jamii Bora Group chairman, Mr James Gacheru.

New investors will be capped at 40 million shares in the fundraising effort that is still subject to regulatory approval.

The bank is also planning to go ahead with an earlier-announced rights issue in which it is seeking to raise Sh500 million.

In the year to December 2016, Jamii Bora Group’s performance plummeted as it sunk into a net loss of Sh167.7 million from a profit of Sh20.4 million in 2015.

The SME-focused lender, which has a customer base of 360,000, has been on the market for fresh capital over the last few years.

It has held three rights issues and in 2013, the company issued a corporate bond.

Last year Jamii Bora raised Sh1.2 billion convertible debt from two PE funds.

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