Bloomberg News

Foreign Demand at Bank of Kigali IPO Was Three Times Offer

June 30, 2011

(Updates with comment from Finance Minister in third paragraph.)

June 30 (Bloomberg) -- Demand from foreign investors for shares in an initial public offer by Bank of Kigali Ltd., Rwanda’s biggest lender by assets, was three times the amount offered, said Chief Operating Officer Lawson Naibo.

The bank offered 40 percent of total shares to people outside the East African nation in a sale that ended June 23, he said in an interview in Kigali, the capital, today. Demand from the offer within the country, which starts today, “will be the same,” he said.

Rwanda doubled the size of its economy in the nine years to 2010 as it recovers from a genocide in which 800,000 mainly ethnic Tutsis died in 1994. The government is selling assets to private investors as it seeks to attract more foreign investors. Rwanda is growing its “financial sector by building our stock exchange,” said Finance Minister John Rwangombwa in a speech in Kigali.

Bank of Kigali plans to raise 37.5 billion Rwandan francs ($62.2 million) in the sale of 300 million shares that closes July 29, African Alliance Rwanda, which is leading the offer, said yesterday.

The lender opened five new branches across the country today, bringing it to a total of 38 locations, said Managing Director James Gatera. It aims to have 85 branches in five years, he said.

--Editor: Emily Bowers.

To contact the reporter on this story: Heather Murdock in Kigali via Nairobi at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net


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