Business / Companies
Agribank seeks to raise $100M by 2018
27 Jun 2016 at 19:49hrs | Views
Agribank is engaging its key shareholder, the government, to raise US$100 million by 2018 in line with financial sector capital requirements.
The bank, currently capitalised to the tune of US$34 million, is now on a recovery path after it received a US$30 million fresh capital injection from the government.
It however emerged at the bank's annual general meeting (AGM) held in Harare that banks ability to raise lines of credits and funding for agriculture will depend on a US$100 million capitalisation.
The financial institution's CEO, Mr Sam Malaba said the bank will next month float Agrobills worth YS$20 million for the 2016/17 summer cropping season.
"We are in good shape but that is not the end as we seek additional funding," he said.
The government has therefore put on hold a proposed privatisation of the bank, a move the State Enterprises Restructuring Agency CEO, Mr Edgar Nyoni said will restore profitability.
"It is a good move and we hope more can be done to unlock additional funds," he said.
The bank posted a profit of US$1,68 million for January to May 2016 from a US$5,8 million loss for the year ended 31 December 2015.
The bank, currently capitalised to the tune of US$34 million, is now on a recovery path after it received a US$30 million fresh capital injection from the government.
It however emerged at the bank's annual general meeting (AGM) held in Harare that banks ability to raise lines of credits and funding for agriculture will depend on a US$100 million capitalisation.
The financial institution's CEO, Mr Sam Malaba said the bank will next month float Agrobills worth YS$20 million for the 2016/17 summer cropping season.
"We are in good shape but that is not the end as we seek additional funding," he said.
The government has therefore put on hold a proposed privatisation of the bank, a move the State Enterprises Restructuring Agency CEO, Mr Edgar Nyoni said will restore profitability.
"It is a good move and we hope more can be done to unlock additional funds," he said.
The bank posted a profit of US$1,68 million for January to May 2016 from a US$5,8 million loss for the year ended 31 December 2015.
Source - zbc
