VenturesNow

Nigeria’s Access Holdings to acquire National Bank of Kenya Limited

Published

8 months ago

March 20, 2024

In its first significant acquisition since former CEO, Herbert Wigwe’s passing last month, Access Holdings of Nigeria has declared its intention to purchase the National Bank of Kenya following KCB’s declaration of sale of the National Bank of Kenya.

Regarding the corporate disclosure available on the NGX website, KCB would be the buyer of National Bank of Kenya Limited’s full-issued share capital by Access Bank Plc, the primary subsidiary of Access Holdings.

Access Bank said that it has signed a legally binding contract with KCB Group Plc, a company based in Kenya, to purchase National Bank of Kenya Limited’s issued share capital, often known as “the Target” or “NBK,” from KCB. Kenya’s biggest commercial bank, KCB Bank Ltd., is likewise held by KCB.

According to the bank, the acquisition is consistent with Access Bank’s strategic expansion goal and positions the company for further growth in the Kenyan market. Bolaji Agbede, Access Holdings Plc’s acting group CEO, said in a statement regarding the deal.

“This proposed acquisition marks a significant step in the execution of our five-year strategic plan aimed at positioning the Bank as Africa’s Gateway to the World. The deal with NBK, a historically strong and well-known bank in Kenya with a balance sheet above US$1.1 billion, presents a compelling opportunity to scale up our growth in the East African market.

We remain confident that our investments in diversifying and strengthening the bank’s long-term earnings profile will deliver significant value for our shareholders, customers, and wider stakeholder groups.”

This will be Access Corporation’s first acquisition since the demise of its former GMD/CEO Herbert Wigwe, suggesting the bank will continue with its inorganic, aggressive growth model.

In September 2023, the Kenyan bank announced a third-quarter loss of over Ksh 3 billion ($22.5 million). At the end of September 2023, its net equity was Ksh 10.6 billion ($79.6 million).

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VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

5 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.