ABU DHABI: The Africa fund managed by Japan's SBI Holdings Inc. and Abu Dhabi-based Invest AD has made its first investment, buying into the initial public offering (IPO) of Rwanda's Bank of Kigali, in a move that illustrates growing interest in the continent's young but fast-developing markets.
The fund, which will deploy $75 million invested by the two partners, is looking to participate in initial public offerings, take stakes in unlisted companies, and negotiate block share purchases in listed companies.
"Because of strong economic growth, Africa has a very interesting IPO pipeline," said David Sanders, Invest AD's Chief Investment Officer.
"Although some listings have been delayed because of the global markets environment, the companies are strong, growing rapidly, and hungry for capital, so we expect some attractive opportunities in coming years."
Bank of Kigali, which has operated for 45 years and is the largest commercial bank in Rwanda, raised $62.5 million in its IPO last month as the bank issued 20% new shares and the Rwandan government sold a 25 percent stake.
The bank became the second company to list on the Rwanda Stock Exchange since the market began operations in January. Rwandan shares were previously exchanged on an over-the-counter market.
-Ends-
About Invest AD
Established in 1977, Invest AD is a leading Abu Dhabi government-owned financial services company, focused on tapping the growth markets of the Middle East and Africa.
Invest AD offers investors access to both private equity and listed equity opportunities in these regions, blending international best practice with intimate knowledge of the markets, networks and dynamics of each country. www.investad.ae
About SBI
Established in 1999, SBI Holdings, Inc. is one of the fastest growing financial conglomerates in Japan. The core business sectors of SBI and its group companies are asset management, brokerage and investment banking, financial services, and housing and real estate. www.sbigroup.co.jp/english
For further information please contact:
Invest AD
Dominic Whiting,
+971 2 6926336,
Email: d.whiting@investad.ae
Said Elbanna
+971 4 446 6277
Email: InvestAD@brunswickgroup.com
SBI Holdings
Corporate Communications Dept,
+813 6229 0126,
Email: inq-ir@sbigroup.co.jp
© Press Release 2011
