KCB completes acquisition of Rwandan Lender

0
145
KCB-Group CEO Joshua Oigara
KCB-Group CEO Joshua Oigara. PHOTO/COURTESY

KCB Group has completed the acquisition of Banque Populaire du Rwanda Plc (BPR) from Atlas Mara Mauritius Limited and Arise B.V.

This follows the securing of the requisite regulatory approvals in Kenya, and Rwanda in what makes KCB Group the majority shareholder in BPR, Rwanda’s second-biggest bank, with effect from August 25, 2021.

KCB Group CEO and MD Joshua Oigara said that the completion of the transaction in Rwanda will give the Group a stronger edge in deepening the ongoing Group strategy to scale its regional presence.

“The combined history of BPR and KCB will take the Group to greater heights, giving us a stronger edge to play a bigger role in driving the financial inclusion and economic empowerment agenda in the East African region,” said Mr. Oigara.

“This will increase our scale and improve our operating leverage by enabling us to deliver our existing retail and wholesale offerings to a wider base of customers in Rwanda while positioning the bank for sustainable growth in the long-term,” Mr. Oigara added.

BPR is a strong retail and SME Bank with one of the largest branch networks in the sector and a long history spanning over 45 years in Rwanda.

The plan, said Mr. Oigara, is to eventually create one banking entity in Rwanda to be named BPR Bank by merging KCB Bank Rwanda and BPR. The combined bank will become the second-largest bank in the industry. KCB Group has appointed an integration committee made up of senior executives to spearhead the attainment of the single entity in Rwanda in the coming months.

Additionally, KCB Group intends to acquire 100% shareholding of African Banking Corporation Tanzania Limited (BancABC) from ABC Holdings Limited (96.6%) and Tanzania Development Finance Company Limited (3.4%). The proposed acquisition is however pending some approvals.

The acquisition of BPR and BancABC provides the Group with the opportunity to rapidly scale up its balance sheet and revenue streams while leveraging on cost synergies, effectively putting it and all its stakeholders on a path to greater prosperity,” Mr. Oigara concluded.

ALSO READ: KCB half-year earnings up 102 pc



LEAVE A REPLY

Please enter your comment!
Please enter your name here