Ecobank launches cross-border offer in Rwanda

Ecobank, a Pan African banking group on Tuesday September 9 launched a $2.5 billion (1.37 trillion) rights issue and public offer in Rwanda. The offer is aimed at capitalising the existing affiliates of the bank, expanding into new markets and upgrading technology. The company is offering 3.76 billion shares, 40 per cent of the total offer to existing shareholders at $0.27 (Frw148) per share in the ratio of five new shares for every nine held. The public offer is made up of 5.12 billion ordinary shares at $0.29 (Frw159) each payable in full on application. The offer which opened on August 25 this year will close October 3, 2008. The pricing for shareholders implied, a 20 percent discount to the 30-day volume weighted average on all three exchanges. while the discount for the public offer was 12.5 per cent. ProfitableEcobank last year registered pre tax profits worth $190.57 m while its total assets amounted to $6.55 billion. The company’s loans and advances to customers were $3.1 billion and deposits from customers $4.7 billion. Ecobank has more than 10,000 employees and more than 500 branches across 25 countries in Africa. Daniel Sackey, Managing Director of Ecobank Rwanda said, Rwandans can participate through the authorised stock brokers at the bank’s headquarters. A statement from the Rwanda Capital Markets Advisory Council (CMAC) signed by the Executive Director, Robert Marthu does not either allow or refuse Rwanda investors to participate in the offer. “The Capital Markets Advisory Council neither approves nor disapproves the Ecobank Transitional Incorporated (ETI) share offer to the Rwandese public to subscribe to the share offer as CMAC is still working on the capital market regulatory framework of the country,” the statement reads in part. Ecobank can not cross list on the Rwandan bourse which currently deals in debt securities only. Ends

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Ecobank launches cross-border offer in Rwanda