HomeLocal NewsTetrad Bank eyes US$50m bailout

Tetrad Bank eyes US$50m bailout

A FIVE-MEMBER delegation partly from the Russian investment group Horizon Capital Consortium Holdings (HCCH), eyeing a major stake in Tetrad Investment Bank (TIB), was expected in Harare yesterday to meet the bank’s shareholders to discuss a US$50 million bailout for the troubled financial institution.

Kudzai Kuwaza

HCCH, led by businessman Sergey Pokusaev, wants a controlling stake in the diversified financial company Tetrad Holdings Ltd which owns Tetrad, one of the banks currently struggling for survival in a market where three banks — Capital, Allied and AfrAsia — closed recently. A number of other banks have also collapsed in recent years.

“A five-member delegation, which comprises bankers and fund managers, is coming today (yesterday) to meet Tetrad shareholders, directors and managers over a US$50 million recapitalisation plan,” a source close to the investors said. “The bank wants US$50 million for recapitalisation, which won’t just be frittered away in paying depositors.”

However, Tetrad, which almost has a negative capital base, intends to come up with a structured plan to pay depositors. The bank was placed under provisional judicial management on January 29 this year.

TIB will hold a meeting with creditors on Wednesday next week in Harare to deal with its debts, liabilities and obligations.

The Finance Bank of Zambia (FBZ) has also made moves to acquire a controlling stake in TIB, going as far as commissioning the revision and updating of a previous due diligence report by Deloitte Zambia. FBZ also wrote a letter to the Reserve Bank of Zimbabwe expressing interest in Tetrad’s equity as foreign investors troop to Zimbabwe.

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