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Zimbabwean investment bank raises Z$300 million in rights
Genesis Investment Bank Limited, has raised $300 million in a rights issue meant to beef up the bank's capital base ahead of the coming deadline for all banks to bump up their statutory capital requirements.
The alignment is necessary in order to harmonise the Genesis’ capital base, following the central bank’s commandment which obliges all merchant houses to have a minimum capital of $750 million, which RBZ says will act as a buffer in times of liquidity strain.
Genesis has recently recorded a 5,358 per cent growth in interim Profit before tax, and has grown its assets by 337 percent up from December to $3.5 billion. Officials at the merchant bank disclosed that the shareholders of the financial institution had overwhelmingly signed up for the additional shares. They said Zimre Holdings Limited (ZHL), Genesis' largest shareholder, had snapped up the bulk of the shares and still retains its top shareholding spot.
Fulton Chibaya, CEO of Genesis Investment Bank, says his bank's strong half year performance resulted from an aggressive business development drive aimed at growing business volumes and diversifyng the client base. He also said that the stock broking operation would bring synergistic value to Genesis' investment activities.
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