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CDHIB announces closing of a USD16.2 million rights issue transaction

NBS Bank Plc, a listed bank and a subsidiary of NICO Holdings Plc raised an additional growth capital through a public issue of new ordinary shares which were listed on 17th July 2017.

CDH Investment Bank, a leading investment bank in Malawi, assisted NBS Bank Plc, a subsidiary of NICO Holdings Plc and a company listed on the Malawi Stock Exchange (MSE) raise additional growth capital of USD16.2 million. The new shares were listed on the MSE on 17th July 2017.

In the rights issue, NBS Bank Plc issued an additional 2,182,930,017 ordinary shares, bringing the total issued number of shares for the bank to 2,910,573,356 and total market capitalization of approximately USD27.4 million.

CDH Investment Bank’s role in the equity capital raise transaction demonstrates that the bank has strong investment banking capabilities and remains able to deliver successful capital market transactions in Malawi.

Speaking during the listing of the new NBS Bank Plc shares, the Chief Executive Officer and Managing Director of CDH Investment Bank, Mr Misheck Esau thanked the regulators, directors and management of NBS Bank Plc and other transaction team members who took part in ensuring a successful transaction. He further said that the rights issue, was a landmark transaction as it was the largest ever capital raise by way of a rights issue in Malawi. He said that the success of the capital raise was an indication that higher capital requirements can be met through the capital market. “CDHIB would like to underscore its commitment to the development of the capital market in Malawi. As an investment bank, we will continue to invest in Malawian skills and expertise to help “Malawi Incorporated” to access various forms of capital through the capital market”. Said Mr Esau.

Mr Esau further said that CDH Investment Bank will be very happy to guide corporates to raise debt or equity capital for their expansion programmes. More importantly, CDH Investment Bank looks forward to listing more company securities in the coming years. He also pledged CDH Investment Bank’s commitment to work with the MSE and the Reserve Bank of Malawi to deepen the capital market in Malawi which he believes would lead to improvement of the Malawi economy.

NBS Bank Plc is the fifth largest bank in Malawi by total assets and only the third largest by market capitalization. Out of the ten banks licenced and operating in Malawi, only three banks are listed, these include; Standard Bank of Malawi Plc which has a market capitalization of USD 208 million, National Bank of Malawi Plc which has a market capitalization of USD170 million, First Merchant Bank Plc which has a market capitalization of USD59 million and NBS Bank Plc.

NBS Bank Plc’s principal business is rendering retail, corporate, and international banking services in Malawi. The business is regulated by Financial Services legislation and is supervised by the Registrar of Financial Institutions, Governor of the Reserve Bank of Malawi.

NBS Bank Plc transmuted from a company called New Building Society in 2003. The New Building Society was formed in 1964 under the Building Societies Act, following the amalgamation of Central Africa Building Society, Commonwealth Century Building Society and First Permanent Building Society. The building society as it was called, raised funds from the public by way of issuing financial instruments and advanced the money by way of mortgage loans against the security of land and buildings. With a view to taking over the assets and liabilities of the New Building Society and operating a fully-fledged commercial bank, NBS Bank Plc was incorporated with limited liability on 14th March 2003. It was licensed under the Banking Act to carry on banking business on 1st March 2004. NBS Bank Plc started its operations on 1st July 2004, when the New Building Society was dissolved and its operations taken over by the NBS Bank Plc.

NBS Bank Plc was listed on the MSE in June 2007, through an initial public offering.

CDH Investment Bank
CDH House, Independence Drive
PO Box 1444
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