Diamond Trust given nod to raise capital
Diamond Trust Bank chief executive officer Nasim Devji (left) and chairman Abdul Samji during an Extraordinary General Meeting (EGM) at the Laico Regency Hotel in Nairobi on March 4, 2014. The bank announced an offer of 22 million shares in a proposed rights issue which the shareholders approved. PHOTO/SALATON NJAU
What you need to know:
- In the proposed fundraising, shareholders will have a chance to buy one share for every 10 held.
- DTB, which has a presence in Tanzania, Uganda and Burundi, will use the extra cash to strengthen its businesses and explore future investment opportunities.
Diamond Trust Bank shareholders have approved the bank’s plan to raise additional capital through a rights issue.
The process, which is expected to start in June, will see the lender issue 22 million new shares.
In the proposed fundraising, shareholders will have a chance to buy one share for every 10 held.
“The proposed rights issue accords shareholders with the opportunity to increase their investment in DTB and benefit from its growth,” the bank’s chairman, Mr Abdul Samji, said yesterday at an extra-ordinary general meeting.
REGIONAL FOOTPRINT
The approval was granted at an extraordinary general meeting held yesterday in Nairobi.
Between 2006 and 2012, DTB undertook three sets of rights issues, raising additional capital of Sh4.1 billion in aggregate from investors; Sh1.8 billion in 2012, Sh1.6 billion in 2007 and Sh771 million in 2006.
DTB, which has a presence in Tanzania, Uganda and Burundi, will use the extra cash to strengthen its businesses and explore future investment opportunities.
“It will play a key role to fund future asset growth and investment in branch network, where we have presence before we can expand to other countries in the region,” DTB’s managing director Nasim Devji said.
At the same time, DTB management announced a 20 per cent rise in profit before tax for 2013. The bank reported a Sh7.2 billion pretax up from Sh6 billion recorded in 2012. Commenting on the result Mrs Devji noted “2013 has been an exceptional year for DTB, with notable growth achieved across all the key parameters.”
Customer deposit grew 20 per cent to Sh129 billion up from Sh107 billion recorded in 2012. Loan book grew by 27 per cent to Sh111 billion. The directors proposed a dividend of Sh2.10 per share up from Sh1.90 a share paid out last year.
