Private equity investors step up funding for Jamii Bora Bank

Private equity investors have stepped up funding for tier III lender Jamii Bora Bank to shore up their shareholding.

The move comes after the bank approved the creation of 30 million new ordinary shares.

The lender, which wants to increase its nominal capital by Sh5 billion through a combination of a rights issue, convertible debt and strategic investors, has recently raised Sh500 million from a private placement.

The bank’s ownership has largely remained the same, with Asterix Holding among the top investors alongside Equator Capital Partners LLC under its ShoreCap II Fund having a 17 per cent stake each.

Catalyst JBB Holdings with 16 per cent stake has overtaken Jamii B Scandinavia AB, which now holds 10 per cent in Jamii Bora while Nordic Micro Cap Investments (PUBL-AB) has seen its stake reduce from 7.04 per cent to six per cent. Cornerstone Enterprises now closes the list of shareholders with just over five per cent.

Took up rights

“Our recently concluded rights issue was successful, with a 107 per cent subscription rate, enabling us to raise the Sh500 million needed to boost the growth of the bank,” said Jamii Bora Group Chief Executive Sam Kimani (right) in a statement on Sunday.

“We are immensely indebted to our shareholders who took up their rights and also to the rump investors whose participation brings on board new investors, thereby broadening our shareholder base, which is great for the future of the bank,” he said.

Before the cash call, three major shareholders had committed to take up over 55 per cent of the rights issue.