Chase Bank of Kenya Plans to Raise Funds, List Publicly by 2016
Chase Bank Kenya Ltd., a closely held private lender, is seeking debt and equity investment for expansion as it targets a Nairobi Securities Exchange (NSEASI) listing by 2016, Managing Director Zafrullah Khan said.
Chase is negotiating with development lenders to raise additional capital, after getting the final portion of a $10 million loan in May from Deutsche Investitions und Entwicklungsgesellschaft mbH, a unit of Germany’s state bank KfW, Khan said yesterday in an interview in Nairobi.
“Our intention is to list, and our strategy says that around 2015 or 2016 we will look at it very closely,” he said.
Kenyan bank earnings grew at a slower pace last year, rising 21 percent to 89.5 billion shillings ($1.1 billion) before taxes, compared with 52 percent growth in 2010, as borrowing costs rose to a record, inflation soared and economic growth slowed.
Chase Bank’s pretax income of 850 million shillings made it the country’s 17th most profitable bank out of 42, according to a report on the central bank’s website.
Chase plans to sell $24 million in shares to existing and new shareholders through private placements this year, after raising $11 million last year, Zafrullah said.
The lender is looking to support revenue growth by increasing lending, deposit-holding and other services to small- and mid-sized companies, expanding agency banking, and doubling the number of branches to 45 over two years, he said.
The bank isn’t affiliated to U.S.-based lender JPMorgan Chase & Co.
To contact the reporter on this story: Sarah McGregor in Nairobi at firstname.lastname@example.org
To contact the editor responsible for this story: Bryson Hull at email@example.com