Shareholders give nod to DTB Rights Issue

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By JACKSON OKOTH

NAIROBI, KENYA: Diamond Trust Bank (DTB) will issue an additional 22 million shares to its shareholders once the Sh2.4 billion Rights Issue receives regulatory approvals from the Capital Markets Authority and the Nairobi Securities Exchange (NSE).

The Rights Issue will enable the bank access fresh capital to fund its assets growth in Kenya as well as increase footprint in Tanzania, Uganda and Burundi.

“We are also looking at expanding into new markets in this sub region. Once all necessary approvals have been obtained, the bank’s directors will decide on the price — usually a discount of the prevailing market price,” said Alkarim Jiwa, Chief Finance Officer, DTB.

SHARE CAPITAL

This Rights Issue follows earlier ones including that which took place in July 2012. In this cash call, DTB was offering some 24,455,566 new additional shares to investors and existing shareholders. Top shareholders of DTB include the Aga Khan Fund for Economic Development, Habib Bank, Jubilee Insurance, International Finance Corporation, Diamond Jubilee Investment Trust and Craysell Investments. Others are Amin Nanji Juma, Standard Chartered Nominees and Property Development and Management Limited.

An extraordinary general meeting yesterday sought shareholders’ approval to float 22 million shares in a rights issue. The cash call is expected to raise about Sh2.4 billion, part of the cash used to raise the bank’s authorised share capital to Sh1.2 billion from the current Sh1 billion.