africa Banking development Economy FDI Finance M&A Mozambique

Arise Fund takes stake in MozaBanco

Arise Fund has agreed to buy a minority stake in Moza Banco, Kuhanha, which administers the pension fund of Mozambique’s central bank.

Arise Fund has agreed to buy a minority stake in Moza Banco, Kuhanha, which administers the pension fund of Mozambique’s central bank.

The management company will invest 8.170 billion meticais ($135.7m) in the reinforcement of Moza’s capital, taking on an 80% stake, with the remaining 20% being held by Novo Banco, the bank that took on the quality assets of bankrupt Banco Espírito Santo, and Moçambique Capitais, with about 10% each and a private investor with 0.01%.

Under the terms of the deal, Moza Banco plans to buy Banco Terra, where Arise Fund holds a stake.

Arise is a company set up by the Norwegian Development Assistance Fund, the FMO business development bank and by Rabobank, which provides financial services to people in developing countries and emerging markets.

Banco Terra Moçambique, which is owned by Rabobank, Norfund, Montepio and GAPI (Mozambican public-private partnership), is ranked 11th in a list of 16 Mozambican banks by total assets in 2016 put together by KPMG for the Mozambican Association of Banks.

Arise fund is the first new shareholder to enter Moza Banco since the recapitalisation. Arise Fund is already a shareholder in a small Mozambican commercial bank, Banco Terra, and Kuhanya announced that Moza intends to acquire Banco Terra.

“With the consolidation of these institutions, in a framework of sustainable growth, Moza Banco will become one of the three main banks in the national financial system”, said the Kuhanya release.

Source: Africa Global Funds

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