TOP STORY: KCB to list on Rwanda’s bourse

A consortium that comprises of Standard Investment Bank and Faida Investment Bank was appointed as the transaction advisor for the KCB’s regional cross-listing Kenya Commercial Bank (KCB), which is in the final stages of starting operations in Rwanda, is set to float its shares on the Rwanda stock market.
KCB’s new branch in Kigali City (Photo/D. Kezio Musoke).
KCB’s new branch in Kigali City (Photo/D. Kezio Musoke).

A consortium that comprises of Standard Investment Bank and Faida Investment Bank was appointed as the transaction advisor for the KCB’s regional cross-listing

Kenya Commercial Bank (KCB), which is in the final stages of starting operations in Rwanda, is set to float its shares on the Rwanda stock market.

KCB was licensed to operate in Rwanda by the National Bank of Rwanda (NBR) about three months ago and it has already established its head office in Kigali. 

Robert Mathu, Executive Director, Capital Market Advisory Council said that he is in touch with the bank’s advisors and that the bank has showed enthusiasm to list on the Rwanda over the Counter Market.

A consortium that comprises of Standard Investment Bank and Faida Investment Bank was appointed as the transaction advisor for the bank’s regional cross-listing. Walker Kontos are the legal advisors.

“I met them (bank officials) when they came here (during the EAC, Commonwealth Business summit) and in Kampala. But I don’t think they will list this year, because it needs approval by the shareholders in an annual general meeting,” Mathu said.

Mathu also added that KCB’s cross listing in Rwanda is expected in the first quarter of 2009. 

KCB is listed on the Nairobi Stock Exchange (NSE) and last month the company shares started trading on the Uganda Securities Exchange (USE). It also plans to cross-list on the Dar-es-Salaam Stock Exchange (DSE).

Listing on the Rwanda bourse would mean that Rwanda’s investors will be allowed to purchase shares in one of East Africa’s largest bank without necessarily trading on USE and NSE.

Mathu said that KCB’s plans of cross listing on the Rwanda stock market is a big boost to the development of the country’s capital market which is still in a nascent stage.

Rwanda currently operates a bond market with equity shares yet to be listed.

“We have the infrastructure in place. We have the listing rules, trading rules….what we don’t have is the listed stocks,” Mathu said.  

If KCB succeeds in trading its shares on the Rwanda stock market and the Dar-es-salaam stock exchange, it would mean that it is the only company in East Africa listed on all the region’s stock exchanges with Kenya airways, East African Breweries limited and Jubilee Holdings Limited which have presence in Kenya, Uganda and Tanzania.

KCB Group Chairman Peter W. Muthoka in a press statement recently said that  the bank’s cross-listing programme had been designed to ensure prospective investors have an easy and convenient way of buying KCB shares from the comfort of their offices without the rigors and risks of undertaking cross-border transactions.

Share performance

The KCB shares have over the past seven years performed consistently well, winning the Africa Investor Series Award for the Best Performing Company among Africa’s top 40 companies in 2007.

In the course of this year, the shares achieved a milestone level in the market capitalisation, hitting over $2b (Rwf1.1trillion) mark owing to increased interest from the market and enhances stock value as a result of good business performance.

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