KCB Group Banks On Ksh 3.5 Billion Trade Deals in DR Congo

KCB Bank is among lenders seeking to finance Ksh 3.5 trillion trade deals in DR Congo, Business Daily reported.

This comes even as the lender announced the acquisition of Trust Merchant Bank SA (TMB) in DR Congo for more than Ksh 15 billion.

As the bank casts its net in the mineral-rich country, it also seeks to be involved in activities related to the same such as export of cobalt, lithium and copper.

According to KCB Chief Financial Officer Lawrence Kimathi, the bank has received a pipeline of Ksh 28 billion in facilities from sectors such as manufacturing and mining after announcing its deal with TMB.

“We are looking at trade finance as a big product to facilitate cross-border trading,” Kimathi said.

In August 2022, KCB Bank announced plans to acquire a majority stake in TMB Bank.

The deal will see KCB acquire 85% of the shares in TMB while the existing shareholders will continue to hold the balance for a period of not less than 2 years after which, KCB will acquire their shares.

The Kenyan lender will pay a cash consideration for the shares determined based on the net asset value of TMB at completion of the proposed transaction, and using a price to book multiple of 1.49.

The acquisition is aligned with the Group’s strategic focus of scaling its regional presence. 

Once completed, the acquisition will complement KCB Group’s regional footprint with an asset base of KShs. 1.5 Trillion and is expected to strengthen the Group’s Retail and Corporate banking franchises.

“We are very excited about the opportunities KCB offers in this transaction and we are proud to bring our unique DRC insights and experience to the KCB Group,” said TMB Chairman Robert Levy.

“We believe that by combining our local knowledge and standing with the size and expertise of KCB Group, we should be able to increase market share and shareholder value through unlocking our synergies and business opportunities.”