ABC’s US$25m fundraising drive continues

Ndamu Sandu

REGIONAL financial giant, ABC Holdings Ltd’s group chief executive officer Douglas Munatsi says the second phase in the fundraising of US$25 million is continuing.



face=”Verdana, Arial, Helvetica, sans-serif”>”The closing of the US$25 million fundraising has been delayed by circumstances beyond the group’s control,” he said.


Munatsi said the delay had affected the ability of an anchor investor to participate in financing within the time frame originally envisaged.


“ABCH is continuing to work with the investor in question and other investors in an effort to conclude the fundraising,” said Munatsi.


Of the US$25 million to be raised, US$10 million would come in quasi- equity while the remainder would be financed by debt.


The fundraising programme is meant to finance the group’s continuing growth needs.


In the first phase of the fundraising programme, the group raised US$39 million comprising quasi-equity of US$19 million and debt of US$20 million.

The debt portion has not been drawn down and is available in the new financial year.


Munatsi said ABCH was in an advanced stage regarding a possible acquisition in East Africa.


He could however not be drawn into divulging details of the possible acquisition.


Sources said the group had set its eyes on Kenya and Uganda.

At the presentation of the annual financial results early this year, Munatsi said the group would enter the Uganda and Kenya markets.


“We intend to spread our wings into East Africa,” Munatsi said.


The East African venture was a result of the group’s good performance in its project in Tanzania, which Munatsi said was doing very well.


With its management now based in South Africa, ABCH recently completed a strategic investment in majority shareholding in a London-based debt capital market business that focuses exclusively on Africa.


The move is meant to enhance the ability of ABC Holdings Ltd to arrange, issue and underwrite debt instruments across Africa.


Relocation to South Africa would enhance the group’s ability to service South Africa corporates engaged in cross border trade and pursue investment initiatives in eastern and southern Africa.


Last week ABCH announced that it had off-loaded its stake in ABC Leasing Mozambique to focus its intellectual and capital resources on its core banking business.


ABCH, however, retains an active presence in Mozambique through its banking subsidiary ABC Mozambique SARL acquired in 2002 which was successfully integrated into the group and is trading profitably.