Atlas Mara completes acquisition of Banque Populaire

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The much awaited merger, equity acquisition and commencement of the operational completion between Banque Populaire du Rwanda (“BPR”) and BRD Commercial Bank Limited (“BRD Commercial”) into BPR has officially been completed. Agreements for the transaction were reached in October 2015. BPR, the name of the combined entity, will be Rwanda’s second largest bank by assets estimated at $325 million. It will also have the largest distribution of branches. Atlas Mara acquired BRD Commercial in October 2014. Atlas Mara will own 62 per cent of the combined entity before purchase of outstanding shares from investors who acquired the bank’s stock during its cooperative days. “After the transaction the local individual shareholders and Rabobank will remain the…

Rwanda raises Frw15b with Treasury bond

m_National Bank of Rwanda (BNR)

The government of Rwanda successfully issued a three year fixed coupon treasury bond worth Frw15 billion. Rwanda sold a three-year Treasury bond worth 15 billion francs ($20.25 million) at a rate of 11.80 percent, the central bank said late on Wednesday. Proceeds of the bond, which attained a subscription rate of 176.39 percent, will be used to fund various infrastructure projects. The East African nation also uses the issuance as a way of developing its capital markers. The bond will be listed for trading on the stock exchange, the central bank said. It added that next issue will be in February next year when it will offer a 5 year Treasury bond. ($1 = 740.7700…

Bank of Kigali records Rwf 16bn net profit

Bank of Kigali headquarters in Kigali

Bank of Kigali, the country’s largest bank by asset base announced a profit of Rwf 16 billion in the nine months of 2015 from Rwf 14 recorded by the bank in the same period in 2014, keeping the bank profitable throughout the year. In the nine months of 2015, Bank of Kigali recorded a net interest income of Rwf 33.9 billion up from rwf 29.0 billion in same period 2014, with Net operating income growing to Rwf 41, 7 billion compared to Rwf 38, 7 billion in the nine months in 2014. In the same period the bank’s interest income grew Rwf income43.9 billion by September 2015 from 38.4 billion while Interest expense also grew…

RSwitch awarded international security standard certification

Daniel Barrientos, RSwitch Chief Executive Officer

Rswitch, a Millicom International Payments Solution Company serving as the national e-payment switch of Rwanda has been awarded with the international security standard certification, second year for its platform that continues to meet international standards. The latest version of Payment Card Industry Data Security Standards (PCI DSS) compliance certification re- affirms the company’s commitment to offer secure card processing solutions in compliance with global standards. “With this recertification, we trust that our customer confidence will be elevated with the assurance of a higher level of protection of their data and in turn safeguard our brand and our reputation,” said Daniel Barrientos, RSwitch Chief Executive Officer in a statement on Monday. He adds, “We at RSwitch believe in…

MFIs take savings culture campaign to children

A child saving at Sacco: Children have been encouraged to save at an early age.

In bid to bolster savings culture, the Association of Microfinance Institutions in Rwanda-AMIR is targeting students as one way of instilling in them the culture of saving at an early age. Peter Rwema, the Executive Secretary of the Association that brings together Microfinance institutions says that campaign will bring more confidence among young people to be able to save, since this will help them in the future. “Schools are among our targets because we want to inculcate saving culture into young people,” he said in an interview with this website on Tuesday. He adds, “When we encourage young people to have at an early we are creating sustainable savings that could help financial institutions to…

Farmers to wait longer for sector tailored insurance products

Agriculture is still considered a risky sector by the financial industry, a situation that has affected its growth.

The central Bank says that the insurance sector posted growth in its profit by 14.7 percent in the first half of the year compared to 14.6 percent in June 2014. Despite this, the sector is missing out in the agriculture sector which is regarded as most risky thus   posing a challenge to extend insurance products to the sector that contributes 30 percent to GDP. The biggest problem with the famers is that the risk is really too high,” said John Rwangombwa, Governor of the central bank while speaking to journalists last week. He adds, “It is not easy to gauge the level of risk with farming dependable on natural factors.” With changing climate and other…

Government to issue a ten year Treasury bond 

Government to issue a ten year Treasury bond

The government is set to issue a ten year Treasury bond worth Rwf10 billion, National of Bank of Rwanda has announced in a statement. The statement signed  by the  Bank’s Governor, John  Rwangombwa, the  bond  is  meant  to finance  infrastructure  projects  and   development of capital   markets. The   national Bank of Rwanda behalf of Government of Rwanda invites bids for 10 year fixed coupon treasury   bond,” the Governor said in a statement. The bond FXD 2/2015/10 years to be issued on 27 May, 2015 will be hosted on Rwanda Stock Exchange. While, Central  Bank  says  the  secondary  trading  in multiples  of Rwf100,000 will  commence on Tuesday  02/06/2015 on  Rwanda Stock exchange. The  statement  also  notes that …

I&M Bank records high profit growth

m_I&M Bank records high profit growth

I&M Bank has experienced a growth in loans and advances of 25 per cent to Rwf 65.6 billion of which more than 60 per cent was availed to small medium enterprises (SMEs) and retail clients. Customer deposits grew from Rwf85.8 billion to Rwf94.1 billion sighting almost a 10 percent increase as the bank registered more than 2000 new accounts. Total deposits grew from Rwf86.6 billion in 2012 to Rwf99 billion in 2013. Overall total shareholder equity also improved substantially from Rwf15.5 billion in 2012 to Rwf18.7 billion in 2013. Apparently the bank (formerly BCR) was rebranded in 2013 to I&M Bank. The bank earned Rwf4.5b profits after tax in 2013 as compared to Rwf4.2b in…

Guaranty Trust (GT) Bank acquires Fina bank

Guaranty Trust (GT) Bank acquires Fina bank

Fina bank operations in Rwanda, Uganda and Kenya will now be renamed and rebranded as subsidiaries of Guaranty Trust (GT) Bank, after the latter acquiring at least 70 per cent stake in shares in the three regional countries. The move comes after customary regulatory approvals which have been obtained after GT Bank and the shareholders of Fina Bank entered into a Share Sale and Purchase Agreement for the acquisition of 70 percent stake in Fina Bank in July 2013. This means that GT Bank will have a good percentage of the $338 million Fina Bank’s assets and operations in Kenya, Rwanda and Uganda, but it is also expected that GT bank will not necesarilly tamper…

Rwanda targeting 80 per cent financial inclusion

Rwanda targeting 80 per cent financial inclusion

In order to achieve the country’s economic transformation and poverty reduction, Rwanda has set its goal on increasing financial inclusion to 80 percent by 2017, through deepening and broadening the financial literacy of Rwandans. This will be attained through the second Financial Sector Development Program (FSDP II), a five year program that seeks to develop a stable, sound and efficient financial sector. The program will also include a National Financial Education Strategy (NFES) that will be integrated into the school curriculum and rolled out in communities to equip Rwandans with the knowledge, skills and belief to make and exercise informed, confident and timely money management decisions “The purpose of financial education is to improve the financial…