Message Ven 30 Mar 2012 00:04

Investrust Raises K32 Billion for Upgrade

Investrust Raises K32 Billion for Upgrade

INVESTRUST Bank has raised K32 billion through the Lusaka Stock Exchange (LuSE) this year meant to boost the bank's capital base.

The bank raised the money from the right issue it offloaded on LuSE.

A right issue is a process by which a company can additionally sell new shares to raise capital through the stock market. With the issued rights, shareholders can buy a specified number of new shares from the firm within a specified time.

Investrust Bank managing director Friday Ndhlovu said during the annual customer cocktail in Lusaka on Tuesday night that the purpose of issuing the right issue was to expand the bank's capital base.

This will enable the bank underwrite larger transactions and increase the loan book as well as loan maturity.

The funds would be used to increase the bank's capacity to contract more debt capital for expansion, branch network and improve the bank's core banking system.

"I am pleased to advise that the total subscription and underwriting commitments received so far, apart from one confirmation being awaited, indicate that the issue was over subscribed and this means the bank will now proceed to implement the entire project," Mr Ndhlovu said.

Mr Ndhlovu said the bank had broadened its shareholding to enhance more citizenry participation thereby strengthening the corporate governance environment.

The bank listed on LuSE in 2007 after offering 25 per cent of the banks shares to the Zambian public.

Asset portfolio has grown to K840 billion while regulatory capital base stands at K84 billion as at October 31, compared to the initial capital of K2 billion.

Mr Ndhlovu said the bank was ranked the ninth largest bank in Zambia in terms of total assets.

And Bank of Zambia deputy governor in charge of operations Bwalya Ng'andu said it was encouraging that Investrust Bank's expansion programme includes setting up branches in Itezi-tezhi, Mumbwa, Petauke, Mansa and Mpulungu.

Dr Ng'andu said for the efforts to be meaningful, products range must be structured to reach segments of people in the rural areas which are excluded from accessing financial services.

He said the central bank was aware of the problems of extending banking services to the rural areas which include high cost of setting up traditional mortar and brick branches.
Ce que l'on conçoit bien, s'énonce clairement, Et les mots pour le dire arrivent aisément. BOILEAU