Barclays Bank Mozambique gets MT 1.2 billion capital injection

Absa group limited (Absa) owns 80% of the shares in BBM, with the remaining 20% held by approximately 1 200 former and current employees of BBM.

As part of this investment, BBM is investing MT 864 million in a new it platform, and MT 336 million towards strengthening its business capacity, while remaining in line with the Basel II capital requirements.

Louis Von Zeuner, deputy chief executive of Absa Group Limited says, “the new it platform will enable BBM to take advantage of the increasing business opportunities, by being able to increase its range of products and services to its valued customers. This platform will increase efficiencies, improve communication networks, and streamline back office processes that will positively impact on the quality of service to our customers.”

“The investment is a strong demonstration of the collective shareholder's commitment to the Mozambican economy, and to growing our business in the country”, says Paul Nice, BBM’s Chief Executive Officer.

To fund these developments and position BBM for growth, the shareholders took a resolution to strengthen BBM’s share capital. This was done by way of an offer for subscription of new shares, pro rated to the existing shareholders.

In keeping with the applicable regulatory guidelines, Absa has underwritten the full amount of the rights issue, with the minority shareholders afforded the opportunity within a period of 12 months, to buy back their pro rata share from Absa at the rights offer price plus interest.

“In bringing this rights issue to market, all applicable regulatory requirements were satisfied. Most importantly, care was also exercised to ensure that the pro rata shareholding percentage of 80⁄20 can be restored”, added von Zeuner.

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