Bank of Kigali, whose major shares are owned by the Rwandan government, has offered 45 per cent of shares to East African interested shareholders. This is in a bid to launch branches all over East Africa.
“We want to explain to shareholders and investors who are Rwandan or foreign prospective shareholders of the Bank of Kigali (BK) how the bank works for now. Our bank plans to open branches in other countries of East Africa towards the end of this year, “said James Gatera, Executive director of BK.
He added that BK no longer gives priority to mortgages but to a long action plan to offer. loans to customers.
Meanwhile, the banking sector controls 83% of total financial sector assets in Rwanda.
Bank of Kigali is the only bank in Rwanda which has about 32% market shares respectively for deposit of total assets and loans.
Bank of Kigali becomes second to offer shares to public buyers following Bralirwa, Rwanda’s brewing company.
In 2010, BK posted a net income of $ 10.3 million and recorded a profit of $ 8.2 million in 2011.
Despite the offer of 45%, the entire capital of the bank will be listed on Rwanda Stock Exchange (RSE). So the government will offload 25% of its shares and the remaining 20% shares are listed.
However, the government will remain the largest shareholder of the bank with 30% equity.
National Bank of Rwanda believes that the economy will increase by 7.7% this year 2012.