The Government of Rwanda through the Ministry of Finance and Economic Planning (MINECOFIN) is pleased to announce the offer for sale of its stake of 19.81 percent in I&M Bank (Rwanda) Ltd, to the public through an Initial Public Offer and subsequent listing on the Rwanda Stock Exchange (RSE).
The share sale offer is in accordance with the Government of Rwanda’s policy of divesting from public enterprises. The total number of offer shares is 99,030,400 representing 19.81 percent of the issued share capital of I & M Bank Rwanda Ltd.
Hon. Claver Gatete the Minister of Finance said, “The Government of Rwanda is committed to the development of the capital markets as a means of building a strong foundation for long term financing for both private and public sector and also empowering the people of Rwanda to participate in the divestiture of government investment in private organizations.”
“Accordingly, to have government shares in the oldest bank in Rwanda sold to the public is a confirmation of government’s confidence in I&M Bank in particular and the financial sector in general,” the Minister further said.
The Executive Director of the Capital Market Authority (CMA), Robert Mathu notes that “This is a major milestone in developing the Rwandan capital market, previous IPOs have been oversubscribed showing the confidence investors have in our nascent capital market and we hope our IPO will be subscribed at a sufficient level.”
Robin Bairstow, the Managing Director, I&M Bank says that the IPO gives an opportunity to the ordinary Rwandan to acquire shares in the country’s oldest bank. “The Bank has a rich heritage spanning over 53 years and is a pioneer in products innovation and has posted strong growth pedestals year on year.” “This offer is therefore a strong vote of confidence in the bank’s performance over the years.” Robin further noted.
Highlights of the Offer:
- All the proceeds of the sale will accrue to the Government of Rwanda.
- I&M Bank (Rwanda) Limited will not receive any proceeds from the Offer for Sale.
- As part of the share offer, 5,000,000 new shares were created to be allotted to the bank’s employees through the Employee Share Offer Program (ESOP)
- The offer period commences today February 14, 2017 and is expected to end on March 3, 2017.
- Share price is RWF 90 and the minimum buy is 1000 shares per application
Reasons for privatization by the Government of Rwanda and issue of new shares
It is the GoR’s objective to encourage investment of shares of successful companies amongst the citizens of Rwanda, and to promote the development of the country’s capital markets. The GoR is pursuing a divesture program of state-owned enterprises, which kicked off in earnest in 1997 with a total of 72 institutions earmarked for privatization/divesture.
The specific objectives of GoR’s privatization /divestiture program entail:
- Reducing the shares held by Government in public companies and thus alleviating the financial burden on its resources (through the elimination of subsidies and state investments) and reducing its administrative obligations in the enterprises
- Ensuring better management and financial discipline in privatized companies
- Attracting foreign investment in Rwanda and the accompanying transfer of technology and knowhow
- Developing and promoting Rwanda’s capital markets and
- To give to the wider public the opportunity to participate in the shareholding of a well-run company
Established in 1963, I&M Bank Rwanda (erstwhile Banque Commerciale du Rwanda Limited - BCR) is the Rwanda subsidiary of I&M Bank Group Limited and the first bank in Rwanda. Headquartered in Nairobi, Kenya, the bank is a leading Financial Services Provider with operations in four countries in Africa. In Rwanda, the company's product offering includes Business Banking, Personal Banking, Diaspora Banking as well as Corporate Banking, with a proven track record in pioneering innovation in products and supporting the Republic of Rwanda’s strategy for Financial Inclusion.
To know more please visit, www.imbank.com/rwanda