![[Kenya] CMA approves cross-listing of first Rwandese Company on bourse](Images/2018/CMA.jpg)
[Kenya] CMA approves cross-listing of first Rwandese Company on bourse
The Capital Markets Authority (CMA) has obtained approval for the cross-listing by introducing Bank of Kigali Group Plc (BK), a holding company of Bank of Kigali Plc, BK Insurance, BK Capital and BKTecHouse, on the Nairobi Securities Exchange ( NSE).
This marks the cross-listing of the first Rwandan company on the bourse. The issuer was listed on the Rwanda Stock Exchange (RSE) in 2011 through an Initial Public Offer.
Chairman of the East African Securities Regulatory Authorities (EASRA) and CMA Chief Executive, Paul Muthaura lauded the new listing for fostering progress towards the development of East African Community single market in financial services.
Mr. Muthaura noted, 'the cross-listing will facilitate cross-border investments, further strengthening the Memorandum of Understanding between capital markets regulators in Kenya, Uganda, Tanzania, Rwanda and Burundi through which a common blueprint on the integration of the East African capital markets was adopted. It will further enhance Kenya's position as an international financial center and gateway for regional and international capital flows. '
The cross-listing of the issuer on the Nairobi Securities Exchange is expected to address challenges BK Group faces in Rwanda, due to the large size of the capital markets. Investors are expected to participate in the various income streams or BK Group and its future capital growth.
In its information memorandum submitted to CMA, BK Group has disclosed plans to undertake a rights issue on the RSE, to raise Kshs7 billion (US $ 70 million). The proceeds of the rights issue will ensure that subsidiaries, and in particular Bank of Kigali PLC, are adequately capitalized to comply with capital adequacy requirements and implement its growth strategy.
'Untaken Rights will be placed with qualified institutional investors on the NSE (rump shares) through a private placement, and thus will not be available to the general public in Kenya', BK Group's information memorandum states. It is estimated that 40 percent of the capital raised will fall under rump shares.
