Arise, a collaborative partnership between international companies, Norfund, FMO and Rabobank take and manage minority stakes in Sub-Saharan African Financial Service Providers (FSPs)
CAPE TOWN, South Africa, February 14, 2017/ — The recent acquisition of a 27.7 % stake in CAL Bank in Ghana by newly formed investment company, Arise is set to boost the banking sector in the country. The shareholding in CAL Bank was acquired by Arise from DPI, a leading Africa-focused private equity firm with assets in excess of US$1 billion under management. Settlement is to be effected on 14 February 2017.
Arise, a collaborative partnership between international companies, Norfund, FMO and Rabobank take and manage minority stakes in Sub-Saharan African Financial Service Providers (FSPs) with the core aim of building strong and stable institutions that serve retail, Small and Medium Enterprises (SMEs), the rural sector, and clients who have not previously had access to financial services.
“The main objective of establishing this company was to strengthen and develop effective, inclusive financial systems in Africa in order to contribute to economic growth and poverty reduction,” said Arise CEO, Deepak Malik.
“We are excited to partner with CAL Bank, the 3rd largest bank in Ghana based on loans advanced and a listed company on the Ghana Stock Exchange. The institution has a strong track record of delivering high growth and solid performance and with the support of Arise is well-positioned to deliver future growth in Ghana, one of Africa’s core emerging economies” added Malik.
Speaking from the bank’s Head Office, Mr. Frank Adu Jnr. CEO of CAL Bank remarked: “This landmark transaction will mark the successful exit of a leading private equity investor, despite a challenging macro environment in Ghana. We look forward to continuing a fruitful partnership with Arise as the new shareholders in CAL Bank”.
Webber Wentzel and Bentsi-Enchill, Letsa & Ankomah acted as legal counsel to Arise on the transaction, while IC Securities acted as Transaction Broker on the transaction. PwC Transaction services and Genesis Consulting Analytics acted as due diligence advisors to Arise.
USD 50 million bridging loan by Arise set to grow the banking sector in Uganda
An approval in principle of a USD 50 million bridging loan by Arise is set to boost the banking sector in Uganda.
According to Arise Chief Executive Officer, Deepak Malik the company will provide a USD 50 million bridging finance facility to dfcu Ltd in Uganda. “The facility was availed on commercially-agreed terms, to enable commencement of the recapitalisation of dfcu Bank in the short term, while complying with regulatory capital thresholds” he said.
dfcu Bank recently concluded an agreement with the Bank of Uganda to purchase the assets and assume the liabilities of Crane Bank Limited (CBL), which was in receivership. The acquisition of CBL will allow dfcu Bank to diversify it service offerings to its clients and make banking more accessible to the public. Further, the integration will enhance dfcu Bank’s competitive edge against peers in the retail and Small Medium Enterprise (SME) sector.
Juma Kisaame, Managing Director dfcu Bank commented, “The acquisition gives us the impetus to achieve our strategic objective of building a robust retail operation with multiple delivery channels whilst consolidating our position as a key player in the SME market segment. It also supports our goal of promoting financial inclusion in Uganda and we welcome the Arise partnership as a contributor to building a stronger financial sector in Sub Saharan Africa”.
“Arise supports the planned expansion of dfcu Bank. We foresee the integration as a catalyst for creating a strong and efficient Ugandan bank, which will have extensive local representation and scalability of distribution (via branch and digital channels)” said Malik.
“This partnership speaks directly to the mandate of Arise, which is to collaborate with local Financial Service Providers (FSPs) in Sub Saharan Africa to boost economic growth through strengthening the banking sector”, he added. Arise is committed to developing inclusive financial systems in Africa and partners with sustainable FSPs to strengthen their ability to supply capital and financial services to SMEs, the rural sector and unbanked people.
“Arise is supportive of dfcu Bank’s growth ambitions, which will enable the organisation to improve its market position and efficiencies. In addition, we believe that this transaction is a catalyst for improved returns to all stakeholders”, concluded Malik.
Arise is a leading African investment company that partners with sustainable, locally-owned Financial Services Providers in Sub Saharan Africa. The company was founded by three cornerstone investors namely Rabobank, Norfund and FMO and currently manages assets in excess of USD 660 million and is operational in over 10 countries.
Arise’s vision is to contribute to the economic growth in Africa and the prosperity of its people by increasing financial inclusion and employment, strengthening rural development and poverty alleviation.
Arise officially launched in South Africa on 2 February 2017 and its aim is to grow its current assets in excess of USD 1 billion.
Rabobank is a Dutch cooperative bank that was founded by farmers in the late 19th century. In the Netherlands, Rabobank is an all-finance bank with a strong local presence, providing a variety of products and services to individuals and companies. Rabobank serves 7.4 million clients in the Netherlands and has 506 branches. Internationally, Rabobank has the ambition to be the leading global F&A bank with a presence in over 40 countries serving over 8.6 million clients.
Norfund, the Norwegian Investment Fund for Developing Countries, was established by the Norwegian Parliament in 1997. Norfund’s objective is to contribute to reducing global poverty through contributing to the growth of sustainable commercial enterprises in developing countries. It offers equity, venture capital and other loans to companies in selected countries and business areas where the private sector lacks sufficient capital to grow and develop viable businesses.
FMO is the Dutch development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 45-year proven track-record of empowering people to employ their skills and improve their quality of life