Diamond Trust Bank rights issue gets CMA nod

Diamond Trust Bank chief executive officer Nasim Devji (left) and chairman Abdul Samji on May 15, 2014. DTB rights issue has been oversubscribed by 340 per cent. PHOTO | SALATON NJAU | FILE  NATION MEDIA GROUP

In Summary

• Shareholders will be required to buy one share for every 10 currently held
• The cash call is expected to raise about Sh2.4 billion
• Diamond Trust Bank expects to use the additional capital raised to fund future asset growth and invest in branch network

By NATION CORRESPONDENT
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Diamond Trust Bank has received the nod from Capital Markets Authority to raise additional funds from shareholders through a rights issue.

Shareholders will be required to buy one share for every 10 currently held.

The cash call is expected to raise about Sh2.4 billion with part of the cash meant to raise the bank’s authorised share capital to Sh1.2 billion from the current Sh1 billion.

The rights issue follows a resolution passed during DTB annual general meeting held on March 4, 2014.

New shares to be issued will be listed on the Main Investment Market Segment of the Nairobi Securities Exchange following closure of the rights issue and subject to approval of CMA. The period of acceptance of the rights issue will open on 30 June 2014 and close on 25 July 2014.

Diamond Trust Bank expects to use the additional capital raised to fund future asset growth and invest in branch network.

It will also finance alternative channels in Kenya as well as further strengthen the group’s presence through additional investments in DTB’s subsidiaries in the region.

The cash will enable it access extra capital to fund assets growth in Kenya and increase its footprint in Tanzania, Uganda and Burundi.