Bank of Kigali coming to NSE, eyes Sh7 billion

Wednesday October 31 2018

BK

Bank of Kigali. PHOTO | FILE 

By BUSINESS DAILY
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The Capital Markets Authority (CMA) has granted approval for the cross-listing by introduction of Bank of Kigali Group Plc (BK) on the Nairobi Securities Exchange (NSE).

This marks the first cross-listing of a Rwandan firm on the bourse, a move the company expects will widen its investor base.

The issuer, which first listed on the Rwanda Stock Exchange (RSE) in 2011 through an Initial Public Offer, is hoping to net Sh7 billion capital from a rights issue to fund its expansion.

Although the regulator did not indicate the listing date, BK Plc had previously said that it expects to start trading on the Nairobi bourse by November 30.

Bank of Kigali Group Plc is the holding company of BK Insurance, stock brokerage firm BK Capital and technology services business BK TecHouse.

Capital raised will be pumped into growing the three firms and expanding their product portfolio.

Single market

CMA chief executive Paul Muthaura welcomed the new listing saying it would “foster progress towards the development of East African Community single market in financial services.”

Mr Muthaura reckons the move will also facilitate cross-border investments, further strengthening the Memorandum of Understanding entered into between capital markets regulators in Kenya, Uganda, Tanzania, Rwanda and Burundi.

“It will further enhance Kenya’s position as an international financial centre and gateway for regional and international capital flows,” Mr Muthaura, who is also the chairman of the East African Securities Regulatory Authorities (EASRA), said in a statement today.

Bank of Kigali Group's largest shareholders are the Government of Rwanda (29.5 percent), the Rwanda Social security Board ( 25.1 percent) and International Institutional Investors (14 percent).