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Business Reporter
Afrasia Zimbabwe Holdings Limited has engaged IMARA Capital Finance to jointly market a Medium Term Secured Note, which is expected to generate incremental $15 million liquidity to the bank’s operations. In a joint update to stakeholders last week, AZHL group chief executive Mrs Lynn Mukonoweshuro and AfrAsia Bank limited chief executive Mr James Benoit said several prospective investors have also expressed interest in making equity investment into AZHL.

“This note has been marketed to local, regional and international investors. The note, which will be drawn in tranches is expected to generate incremental $15 million liquidity. The first tranche will be drawn towards the end of January 2015,” said Mrs Mukonoweshuro

She also said AZHL’s micro finance unit, Micro King Finance has attracted regional and international interest.

During the course of December and early January, shortlisted investors will visit Harare to conduct their due diligence with a view to submitting final offers in mid-January.

The proceeds of the partial disposal will be reinvested in the business. She said these processes take time to complete but are well advanced. She said they appreciated their valued customers and other stakeholders for the patience with the struggling financial institution.

Benoit reminded the stakeholders that AfrAsia Bank Ltd (ABL) in Mauritius had raised nearly $15 million of fresh capital from the National Bank of Canada this month, “and this clearly demonstrates faith in the brand.”

“In addition, ABL recently completed a $46 million Class A Tier 1 Preference Share Issue, which will be listed on the Stock Exchange of Mauritius soon,” Mr Benoit said.

“ABL is committed to raising capital for all its Group operations to allow them to compete strongly in their respective markets, including in Zimbabwe,” he said.

AfrAsia has been struggling to meet its capital requirements and the bank’s depositors have been singing blues as they failed to get their money in time.

At the beginning of this year, the central bank extended the deadline for the achievement of a $100 million minimum capital threshold for commercial banks to 2020.

Currently, minimum capital levels are $25 million for commercial banks and AfrAsia Bank is among five banks that have been put in the “ill” bracket by the central the central bank.

AfrAsia Zimbabwe in June announced that it was planning to raise $100 million in fresh capital after its parent company. ABL also said it would inject $20 million to meet capitalisation requirements, among a variety of initiatives and increase its shareholding from 36 percent to 62,5 percent.

ABL took control of the former Kingdom Financial Holdings last year after buying out Chanakira and renamed it AfrAsia Zimbabwe Holdings. The bank changed its name from Kingdom Bank to AfrAsia Bank Ltd and Kingdom Asset Management to AfrAsia Capital Management.