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May 12, 2008

KCB to raise 5bn in rights issue

by Richard Kilner

Story link: KCB to raise 5bn in rights issue

Shareholders in the Kenya Commercial Bank (KCB) agreed at the firm’s 37th AGM to raise additional capital through a rights issue.

The KCB, which is aiming to raise KShs5bn, wants to use the extra capital to bolster its expansion plans both in Kenya itself and the region generally.

The funding will also be used to support business growth.

However, the resolution requires the green light from the Nairobi Stock Exchange and the Capital Markets Authority to go ahead.

Another resolution was approved, which authorised the release of a further 400m shares to raise more money.

The proposed cross-listing of shares in the Dar-es Salaam Stock Exchange and Uganda Securities Exchange was approved, as was a plan formulated by directors to create an Employee Share Ownership Plan with 150m shares set aside for this scheme.

Over the last few years the KCB has seen its fortunes swung widely from a loss of KShs4.1bn in 2002 to a pre-tax profit of KShs4.2bn last year.

During the same timescale the firm’s asset base has more than doubled, topping the KShs120bn mark in 2007.

With regional expansion, the KCB will endeavour to positions itself as a pan-African bank, according to chief executive Martin Oduor-Otieno.

 

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