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Faida & IMBC Deliver 12% Oversubscription for I&M Bank (Rwanda) PLC Rights Issue


Faida Research - November 3, 2020 - 0 comments

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We (Faida Securities Rwanda) and I&M Burbidge Capital, as the Joint Lead Transaction Advisors for the 2020 Rights Issue, are pleased to announce the successful completion of the transaction with the Rights Issue having closed with an oversubscription of 12%. 

The Rights Issue raised  7.9 billion Frw  (approx. Kshs 887 Million) at a share offer price of Frw 39.60 for a total 202,000,000 shares on offer. However, those applied for totaled 225,584,700 buoying the performance of the transaction by 112%.

I&M Bank (Rwanda) Plc undertook the Rights Issue to secure long-term funding to accelerate investment in technological platforms and bolster the Bank’s Tier 1 Capital Adequacy Ratio.

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According to Ms Rina Hicks, Chief Operations Officer at Faida Securities Rwanda an associate company of Faida Investment Bank said, “Despite the effects of the COVID-19 pandemic, we are proud to partner with the bank in this transaction and are optimistic about the Bank’s growth prospects. I&M Bank Rwanda has a track record of offering high Return on Average Equity and is a strong dividend counter.”

Wishing them success in the years ahead, Ms Hicks added, “We believe that going forward, growth will be driven by the Bank’s current strategy which largely focuses on increasing their MSME offering and leveraging digital banking to enhance efficiency and revenue diversification.”

Speaking about the transaction, Ms. Gauri Gupta, Director at I&M Burbidge Capital, said “We are delighted to have advised on this successful transaction. The advisory teams and the Bank’s transaction team worked extremely hard to complete this within the timeframes, and the highly successful outcome is a testament to the professional approach of the advisory teams as well as I&M Bank’s fantastic performance record and reputation in the market.”

I&M Bank Rwanda has grown steadily over the past five years and the results of this Rights Issue demonstrate the commitment by its shareholders to continue to be a part of the Bank’s sustainable growth story.

Please see the press release below:

I&M Burbidge Capital-Faida-Press Release

 

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