HARARE - Trust Holdings Limited (THL)’s key shareholders have endorsed a $9 million deal to boost its commercial banking unit’s capital base.

William Nyemba, the group’s chief executive, said the deal — recommended by the board to a core group of shareholders on Monday — awaited minority shareholder approval at an extra ordinary general meeting to be held in forthnight.

He said the money — to shore up Trust Banking Corporation Limited (TBCL) — was being arranged by one of THL’s top 10 shareholders.

“We have signed a non-disclosure agreement. You should also know that there are other parties which still need to be consulted  such as the Zimbabwe Stock Exchange so I can’t give much detail,” Nyemba told businessdaily yesterday, although he could not disclose the name of the shareholder.

With TBCL being a 100 percent owned subsidiary of THL, the group’s top 10 investors  include Trust Employee Share Ownership Trust which holds 11,2 percent, Msasa Nominees 11 percent, National Railways  of Zimbabwe contributory pension fund 8,59 percent, Old Mutual Life Assurance 6,4 percent, Wilta Investmests 6,05 percent and TFS nominees 3,82 percent.

Nyemba said THL currently held $17 million and the $9 million injection would make TBCL comply with the first phase of the Reserve Bank of Zimbabwe’s capital requirements.

Last year, the central bank governor Gideon Gono announced phased recapitalisation deadlines for banks to achieve a minimum equity capital of $100 million by June 30, 2014.

The first phase of the deadline for banks to have $25 million, from an initial $12, 5 million, lapsed on December 31, 2012.

The second phase deadline is June 30 this year where banks are required to have $50 million.

Banks are required to increase their minimum equity capital to $75 million by December 31 and eventually fully comply by June 2014. - Eric Chiriga, Business Editor