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Maendeleo Bank seeks Sh15bn in share sale

What you need to know:

  • The bank – which started as a result of the strategic decision made during the Annual General Meeting of the Evangelical Lutheran Church of Tanzania – Eastern and Coastal Diocese in 2008 before its actual establishment in September 2013 – became the first entity to list on the Enterprise Growth Market (EGM) of the Dar es Salaam Stock Exchange (DSE) and hence became a Plc from the start.

Dar es Salaam. Maendeleo Bank Public Limited Company plans to raise Sh15 billion in its planned share sale, the company said yesterday.

The bank – which started as a result of the strategic decision made during the Annual General Meeting of the Evangelical Lutheran Church of Tanzania – Eastern and Coastal Diocese in 2008 before its actual establishment in September 2013 – became the first entity to list on the Enterprise Growth Market (EGM) of the Dar es Salaam Stock Exchange (DSE) and hence became a Plc from the start.

In 2015, Maendeleo Bank, which trades as MBL – conducted a rights issue that enabled it to collect Sh2.83 billion thereby boosting its capital base to Sh7.33 billion. Within the period of two years, Maendeleo Bank Plc managed to break even and started generating profits.

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But with the desire to transform itself from a Regional Bank into a Commercial Bank, MBP is now eying an Initial Public Offering (IPO) in which it will seek to sell a total of 17 million shares to the public, according to the bank’s head of finance, Mr Peter Tarimo. “Pending approval from the Capital Markets and Securities Authority (CMSA), our goal is to sell a total of 17 million shares and we hope the authority will approve the proposal by 15th September, 2017,” said Mr Tarimo.

Apart from listing the company at the DSE, Mr Tarimo said that the bank is also mobilizing more deposits through its special promotional campaign christened: “developments with you”. The campaign started last month and ended yesterday. It (the campaign) will run through three phases of one month each. Hundreds of people have opened accounts with the bank during the first phase but of the number, 306 made significant deposits.

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