Credit Bank plan to list on NSE still in motion

Credit Bank plan to list on NSE still in motion
Credit Bank plan to list on NSE still in motion

Africa-Press – Kenya. Credit Bank is still keen to list on the Nairobi Securities Exchange (NSE), dismissing media reports that it has halted the plan.

In a statement, the lender says Credit Bank’s principal shareholder is still in talks with industry regulators and enablers.

“Despite the ongoing challenges experienced by publicly listed companies, we remain optimistic about the strategic advantages of listing Credit Bank shares on the Nairobi Stock Exchange. The board remains dedicated to upholding exemplary corporate governance and financial inclusivity,” the bank says in a statement released early Thursday.

It adds that the principal shareholder is in consultation with all stakeholders to ensure a broad-based consensus for the listing and support for the larger strategic plan.

“Our proposed listing signifies more than just our growth trajectory; it emphasizes our unwavering commitment to elevating Credit Bank’s status from a tier three to a tier two bank, thereby solidifying long-term stability”.

The lender had in August this year indicated that it was eying Sh1 billion from its listing plan.

This will be the first listing in the exchange’s main segment in about a decade following the self-listing of the NSE in July 2014.

The bank had recently raised its capital after selling a 20 per cent stake to Mauritius-based private equity fund, Shorecap III.

The deal was struck in April following approvals from the Competition Authority of Kenya and the Central Bank of Kenya.

Securing the capital injection was crucial in laying the groundwork for going public given that it serves as a pointer of confidence from a strategic investor with regard to the growth prospects of the bank.

The Simeon Nyachae family is the anchor shareholder at the bank, holding a 27.1 per cent stake through the Sansora Group of Companies, a stable of four family-owned entities.

The planned listing is expected to boost President William Ruto’s dreams of breaking the listing dry spell at the Nairobi bourse.

He in October last year indicated that at least five State-owned entities go public within 12 months and challenged the private sector to match the same.

“I have said and made a commitment and asked the ministry concerned that between five and 10 public enterprises that are mature should be listed in the next 12 months,” Ruto said.

“I expect that the private sector will work with the capital markets so that we can also have companies from the private sector listing at the exchange.”

Early this week, the High Court poured cold water on Ruto’s plans after it halted the planned privatization of 37 state agencies.

The lender cut its gross losses by Sh66 million for the financial year ended December 2022.

The bank’s loan book closed in December 2022 at Sh21.1 billion having grown from Sh17.8 billion as at the close of December 2021.

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