DIVERSIFIED financial concern Tetrad Holdings Limited (Tetrad) has wrapped up a deal with an unnamed investor that will see the injection of fresh capital and possibly meet minimum capital requirements as set by the Reserve Bank of Zimbabwe (RBZ).
CHIEF REPORTER
In a trade update, Tetrad Holdings Ltd said it had sold its controlling stake in Tetrad Investment Bank to an unnamed investor.
The deal is suspected to be around $50 million.
The development would translate in “creating a strong foundation for the institution going forward”.
“The board of Tetrad Holdings Ltd is pleased to advise that an agreement of sale for a controlling stake in its subsidiary company, Tetrad Investment Bank Limited, has been reached.
“The investor will inject new capital into Tetrad Investment Bank Limited, creating a strong foundation for the institution going forward,” the firm said.
The bank’s capitalisation stood at $35 million as at June 30 2013 below the central bank’s minimum capital threshold.
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Keep Reading
In 2012, the RBZ raised minimum capital requirements for commercial and merchant banks from $12,5 million and $10 million respectively to $100 million in a bid to minimise systemic risks in the fragile financial services sector.
Foreign investors have of late shown keen interest in investing in indigenous banks.
National Merchant Bank has already secured $16 million in lines of credit, while South Africa’s Nedbank has facilitated a $75 million injection into its local unit, MBCA.
Allied Bank has been snapped up by Mauritian investors for $30 million and Genesis Investment Bank has already surrendered its banking licence after it became apparent that it could not raise the capital.
