Finhold seeks funds for projects

Eric Chiriga



ZIMBABWE Financial Holdings (Finhold) plans to increase its authorised share capital by 500% to raise funds to finance projects and recapitalise subsidiarie

s.


The financial institution intends to increase its authorised share capital from $200 million consisting of 200 million ordinary shares of $1 per share nominal value to $1 billion consisting of one billion ordinary shares of $1 per share nominal value.


Finhold will effectively raise $800 million by creating a further 800 million ordinary shares.


The transaction is yet to be approved at the company’s seventh AGM to be held on June 9.


“It is necessary for the group to raise funds to finance its ongoing expansion and computerisation programme as well as the recapitalisation of subsidiaries in line with the new capital requirements,” said Finhold in a notice to shareholders.


Finhold is a holding company for a group of companies engaged in commercial and merchant banking. It recently acquired banking institutions under Intermarket Holdings.


Its banking subsidiary, Zimbabwe Banking Corporation (Zimbank), is expected to raise US$10 million, or $1 trillion at the ruling exchange rate, to meet the new US dollar-indexed capital requirements introduced by the Reserve Bank of Zimbabwe.


Finhold also owns Syfrets Merchant Bank.


The financial institution said there was a need to enhance its balance sheet against the backdrop of a hyperinflationary operating environment and the sharp depreciation of the local currency against major convertible currencies.


The Zimbabwe dollar has continued to slide on both the official and parallel markets.


The dollar now trades at around $101 195 against the greenback on the interbank market while it hovers above $200 000 on the parallel market.


Finhold also intends to change its name from Zimbabwe Financial Holdings Ltd to ZB Financial Holdings Ltd.


“It has become necessary to rebrand the group so as to align the names and logos of the different strategic business units and other group companies to one mother brand.”


Finhold recently acquired a 72% stake in the Intermarket group following a debt-equity swap, bringing Intermarket’s commercial banking and building society subsidiaries under its realm.

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