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).
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.
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.