By Tatenda Mujeyi
Microfinance bank GetBucks has held an extraordinary general meeting to notify on resolutions the bank has taken to raise additional capital of up to RTGS$47 million through right issues in Harare today.
“At a meeting of Shareholders held this morning, GetBucks Microfinance Bank Limited (GetBucks) shareholders approved resolutions that would allow the bank to raise up to RTGS$47 million in additional capital today,” GetBucks Chief Financial Officer Paul Soko said.
The resolution was reached through a board resolution that will see shares being put under the control of the board in order to raise the required capital.
“The approvals were obtained through the resolutions to raise approximately RTGS$5 million via a renounceable rights offer to shareholders, and 350 million shares were placed under the control of the board of Directors which could potentially raise up to RTGS$42 million for the bank,” Soko said.
The money is being raised to facilitate the growth of the bank which was listed on the stock exchange into a commercial bank.
“The Microfinance bank is raising this capital as it pursues a commercial licence that requires a minimum RTGS$25 million in capital”, Mr Soko also said.
The capital will also allow the bank to fund more agriculture, manufacturing ventures as well as focus on SME’S and individual needs.
“Additionally, the bank requires the funds to boost its capacity to write more business in the agriculture and manufacturing sectors with its focus on SME’s and individuals.”
Shareholders also recommended that “employees be allowed to participate in a share purchase scheme instead of an employee share option scheme.
GetBucks is a deposit taking micro-finance institution whose business is holding current and savings accounts, mobile and internet banking that has experienced exponential growth and currently has 14 branches across the country.