Bank of Kigali Seeks $67 Million in Offer That Dilutes State
(Bloomberg) -- Rwanda’s biggest lender is seeking to raise 60 billion francs ($67.3 million) in a rights offer that will dilute the government’s stake.
Bank of Kigali Ltd. will issue 222.2 million new shares at 270 francs apiece in the ratio of one share for every three held, according to an emailed statement by the lender’s investment unit, BK Capital Ltd. That’s a discount of 6.6 percent to the stock’s last traded price of 289 francs.
The government holds 29.4 percent through the Agaciro Development Fund and another 32.4 percent through the Rwanda Social Security Board, or RSSB. While the government’s stake will be available for allocation in a subsequent offer of any rights shares not taken up, the “RSSB intends to participate in the rights issue and will subscribe to a level that ensures a shareholding post issue of 30 percent,” BK Capital said.
The stock will cross-list on Kenya’s Nairobi Securities Exchange and trading is scheduled to start on Nov. 30 in both countries. Renaissance Capital Rwanda Ltd. is the lead transaction adviser for the offer that closes on Nov. 9. The offer of unallocated rights opens three days later and closes Nov. 16.
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