Tetrad targets $500m capital

HARARE - Financial services group Tetrad Holdings Limited (THL) says it is focusing on raising $500 million capital by 2015 and has no immediate plans to list on the Zimbabwe Stock Exchange (ZSE).

Eugene Mlambo, THL’s chief executive, told businessdaily that it was imperative to realign and consolidate capital base before listing on the local bourse.

“We are not in hurry to list on the stock exchange and in the meantime our main priority is to ensure that we recapitalise our businesses,” he said.

“Public listing is one of our long-term initiatives,” Mlambo said, adding that Zimbabwe’s business environment called for innovation.

“Our financial services are the mainstay of our business while our property division acts as hedge. We are into agriculture because food remains a top priority in this country and also have interests in the mining industry which is experiencing rapid growth. Going forward we anticipate that our business will inherently grow and consolidate a $500 million capital base by 2015,” said Mlambo.

This comes as the group’s banking subsidiary Tetrad Investment Bank (TIB) has complied with the initial phase of the Reserve Bank of Zimbabwe (RBZ)’s minimum capital requirement, reaching $25,19 million by December last year.

Last year, RBZ governor Gideon Gono ordered banks to recapitalise to a minimum of $100 million in a phased manner.

In the first phase, whose deadline expired on December 31, 2012, commercial and merchant banks were supposed to increase their minimum capital to $25 million, then up it to $50 million by June 30 this year and $75 million by December 31.

Banks should reach $100 million by June 30, 2014.

Mlambo said plans were in place to capitalise the bank from group’s internally-generated resources.

Recently, TIB’s managing director Emmanuel Chikaka said his group’s recapitalisation exercise was progressing well and preparations to launch a commercial bank were at an advanced.

He said their application for a commercial bank licence was being finalised.

Chikaka said moving into commercial banking would buttress the group’s products and services.

He said THL was already putting in place appropriate structures for commercialisation.

TIB has four branches and work is underway to expand its footprint later this year. - Kudzai Chawafambira

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