Mkombozi Commercial Bank (MKCB) has officially launched a rights issue sale of TZS5.8 Billion in an attempt to raise its capital base.
The sale should see the bank raise its share capital from TZS12.7 Billion to 18.5 Billion, an increase of over 45%.
The bank will sell its rights issues to shareholders at TZS1,000 per share.
The banks rights issue sale follows a recent directive from the Bank of Tanzania requiring commercial banks to increase their capital base by 2015 from TZS5 Billion to TZS15 Billion.
The initial phase of the rights issue will end on February 02, 2014.
MKCB Managing Director, Edwina Lupembe indicated that if there is a surplus of shares after the first phase, an additional second phase would be introduced from March 01 to March 14, 2014.
She also clarified that the increased capital will be utilized to expand the bank’s presence in the region.
MKCB started in 2009 as an initiative of the Tanzania Episcopal Conference to establish a commercial bank with the main objective of serving and supporting the emerging Tanzanian businesses for provision of financial services.
Mrs Lupembe gave an exclusive interview to TanzaniaInvest where she discussed MKCB, the banking sector and the Tanzanian economy. To read the interview, please click the below link: http://tanzaniainvest.com/banking-finance/interviews/777-lupembe-mkombozi-commercial-bank