Cogebanque trades 40 per cent shares, to raise capital

Cogebanque has sold 40 per cent shares to Shorecap International, Africainvest and Belgium Investment Company (BIO).

Cogebanque has sold 40 per cent shares to Shorecap International, Africainvest and Belgium Investment Company (BIO).

The three investors paid Frw6 billion, to recapitalising the bank that had failed to raise Frw5 billion, a legal reserve requirement set by the central bank if a financial institution is to operate as a commercial bank.

Shorecap International is Chicago based, Africainvest is from Tunisa and Belgium Investment Company (BIO) is a from Belgium

The Chairman Board of Directors, Jean Marie Karekezi said the coming of the new investors would improve the banks’ operations, hence expanding its services to the clients. Francoise Kanimba, the Governor National Bank of Rwanda said investment has provided Cogebanque with net equity necessary for stability. "It’s important (the capital) because it protects the bank’s creditors and covers its risks," he said.

Shorecap International aims at promoting the creation of a strong private sector in developing and emerging countries while BIO targets small and medium enterprises (SMEs) and Microfinance.

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