MAURITIUS-based AfrAsia Holdings Limited (AfrAsia) has injected liquidity support to the tune of $10 million to Kingdom Bank Limited as part of strengthening the institution's financial position. AfrAsia has also committed to lead the rights issue and private placement to raise $20 million with another $80 million through private placement as the second phase.
"To compliment prospects of strengthening the company's financial position, shareholders also passed the resolution to issue potential investors with preference shares. This is a special class of preference shares designed to meet Reserve Bank of Zimbabwe's Tier1 key requirements while offering options for investors," said AfrAsia Kingdom Zimbabwe group chairperson Sibusisiwe Bango in a statement.
She said during their Extraordinary General Meeting on Friday shareholders passed resolutions aimed at rebranding the group as well as strengthening the group's financial position and ease the liquidity challenges facing the country.
Bango said the resolutions passed include increasing ordinary share capital, consolidation of ordinary share capital.
"The resolutions are expected to strengthen the group's financial position and go a long way in easing liquidity challenges facing the country. At the company's Extraordinary
General Meeting (EGM) held in Harare today (Friday), shareholders passed among other special resolutions, increase in ordinary share capital, consolidation of ordinary share capital, change of name and rebranding as well as issue of preference shares," she said.
She said the local parent company would also be rebranded to AfrAsia Zimbabwe Holdings Limited from AfrAsia Kingdom Zimbabwe Limited while Kingdom Bank Limited and Kingdom Asset Management will be rebranded to AfrAsia Bank Zimbabwe Limited and AfrAsia Capital Management (Private) Limited respectively.
Bango said MicroKing Finance would however retain its name. "The rebranding of the company, to be implemented with immediate effect, will benefit greatly from the infusion of international banking products, experience and synergies that will result from the company's association with an international banking group."
She said the outcome of the EGM signalled the dawn of a new era for the group in light of liquidity challenges facing the country at large.
"This development paves way for further injection of capital into the group, which will result in the strengthening of the company's balance sheet."
In September 2013, Nigel Chanakira exited as director of all AfrAsia Kingdom Holdings Limited subsidiaries after selling his 30 percent stake in AfrAsia Kingdom Zimbabwe Limited (AKZL).
However, he has retained the "Kingdom" trademark under the Botswana-based offshore bank, Kingdom Bank Africa Limited.
On the future of the Group, Bango said, "The success of our EGM . . . is without doubt a catalyst for a strategy of positive change and turnaround that will strengthen the group and enable it to enhance its role within the financial services sector and the economy at large. I am thankful to all our shareholders for their continued commitment to the company. We look forward to the new era as we Bank Different and gear ourselves to offer relevant solutions to all our stakeholders and contribute towards the economic growth of Zimbabwe at large."
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