Diamond Trust Bank (DTB), a publicly traded bank operating in East Africa as an affiliate of the nonprofit Aga Khan Development Network, reportedly has opened a rights issue in an effort to raise KES 1.81 billion (USD 21.5 million). This is DTB’s third rights issue, the previous two being held in 2006 and 2007.
According to a statement attributed to DTB’s Chief Executive Officer (CEO) Mr Nasim Devji, the new funds will support the bank’s asset growth, investment in the branch network and additional investments in DTB subsidiaries. DTB reportedly has plans to begin offering agent banking in October and launch a pilot microfinance unit in Kenya at an undisclosed date.
The new shares will begin trading on the Nigerian Stock Exchange (NSE) on September 12, 2012. Existing shareholders now enjoy a pre-listing, discounted purchase option that will expire on August 10.
DTB has branches in Kenya, Tanzania, Uganda and Burundi. As of March 31, 2012, DTB Kenya held KES 111 billion (USD 1.3 billion) in total assets. For financial year 2010, DTB Uganda reported UGX 292 billion (USD 117 million) and DTB Tanzania held TZS 269 billion (USD 169 million) in total assets. Financial information for DTB Burundi is unavailable. In 2010, AKDN reported a budget of USD 625 million.
By Charlotte Newman, Research Associate
About Aga Khan Development Network
Based in Switzerland, the Aga Khan Development Network (AKDN) is a group of 10 private international nonprofit development agencies that aims to improve the welfare of people in the developing world. AKDN works in approximately 30 countries in areas including food security, health, education and access to financial services. In 2010, AKDN reported a budget of USD 625 million.
Sources and Additional Resources:
AllAfrica: “East Africa: DTB Opens Sh1.8 Billion Rights Issue for Micro-Finance Expansion,” http://allafrica.com/stories/201207181295.html
MicroCapital.org story, July 19, 2012, “MICROCAPITAL BRIEF: National Microfinance Bank Offers Receipt Financing System to Tanzanian Coffee Growers,” https://www.microcapital.org/microcapital-brief-national-microfinance-bank-offers-receipt-financing-system-to-tanzanian-coffee-growers/
MicroCapital.org story, July 16, 2012, “MICROCAPITAL BRIEF: ResponsAbility Reaches Deals Totaling $1.5m with Advans Cameroun, PRIDE of Tanzania,” https://www.microcapital.org/microcapital-brief-responsability-reaches-deals-totaling-1-5m-with-advans-cameroun-pride-of-tanzania/
MicroCapital.org story, June 2, 2009, “MICROCAPITAL STORY: Meet a MicroBank: An Interview with Managers of First Microfinance Bank (FMFB) of Afghanistan, Member of Aga Khan Development Network (AKDN),” https://www.microcapital.org/microcapital-story-meet-a-microbank-an-interview-with-managers-of-first-microfinance-bank-fmfb-of-afghanistan-member-of-aga-khan-development-network-akdn/
MicroCapital Universe Profile: Aga Khan Development Network
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Aga+Khan+Development+Network
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