7 January 2016

Rwanda: Atlas Mara Completes Acquisition of Second Rwandan Bank

Atlas Mara Limited has completed the purchase of a majority stake in Banque Populaire de Rwanda (BPR), clearing way for a merger with BRD Commercial Bank that will see it become one of the largest lenders in the country.

Agreements for the transaction were reached in October last year.

BPR, the name of the combined entity, will be Rwanda's second largest bank by assets estimated at $325 million. It will also have the largest distribution of branches.

Atlas Mara acquired BRD Commercial in October 2014.

The London Stock Exchange-listed private equity fund is owned by former Barclays Bank executive Bob Diamond and Ugandan entrepreneur Ashish Thakkar. It plans to invest $21 million (Rwf15.3 billion) in BPR.

Atlas Mara will own 62 per cent of the combined entity before purchase of outstanding shares from investors who acquired the bank's stock during its cooperative days.

"After the transaction the local individual shareholders and Rabobank will remain the minority shareholders," Konde Bugingo, the CEO of BRD Commercial said.

The deal took a while to conclude because many of the individual shareholders had not been registered.

"Efforts have been made to register the local shareholders until there were no more registrations being done" said Bugingo.

Atlas Mara also has interests in Botswana, Mozambique, Tanzania, Zambia, Zimbabwe and Nigeria. Its ambition is to become a leading financial services group in Africa.

Financial analysts say more players in the Rwanda market could help customers enjoy lower interest rates and increase financial inclusion. Commercial banks account for 66.6 per cent of the total assets of the financial sector, followed by pension funds (17.7 per cent), insurance companies (9.8 per cent) and micro-finance institutions at 5.9 per cent, according to central bank data.

Rwanda

Police, Tigo Sign MoU On Crime Detection

Rwanda National Police (RNP) and Tigo-Rwanda, a mobile telecom company, have signed an agreement establishing joint… Read more »

Copyright © 2016 The East African. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 1,000 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.