BCR today becomes a part of a regional financial conglomerate thereby gaining access to the markets within the East African community and beyond.
This has been made possible through an 80% equity buy out from Actis, of the Bank’s shareholding, by a consortium comprising I&M Bank – a Kenyan based Bank, and 2 European Developmental Financial Institutions – DEG and Proparco.
Actis has held 80% of BCR’s shareholding since 2004, when it acquired the shareholding from the Government of Rwanda. Since then, the Bank has experienced tremendous growth. BCR currently has a network of 15 branches and a staff compliment of over 250.
Over the years, BCR has built a strong reputation of reliability, solidity and innovation that has enabled it to develop quality and profitable operations. The Bank’s total assets aggregate RWF 92.9 billion (approx. KES 12.4 billion; USD 61.9 million), as at December 31st 2011.
The consortium of Purchasers is led by I & M which possesses a rich heritage and history in the banking sector.The Bank was established in 1974 as a community financial institution that has since grown into a full-fledged commercial bank with presence in 3 countries.
The I&M Bank Group comprises I&M Bank Limited in Kenya, I&M Bank (T) Limited in Tanzania, Bank One Limited in Mauritius, and now through this acquisition of BCR Limited in Rwanda.
With a work force of over 860, balance sheet size of KES 108 billion (approx. USD 1.27 billion) and profit before tax of KES 4.95 billion (approx. USD 58.3 million) it is one of the strongest and best managed banks in Kenya.
In Kenya the Bank has a network of 19 branches covering the four major financial centres and access to approx. 4,000 ATMs across the country through the Kenswitch network. With a fast growing customer base, I&M has grown to be a market leader in its domestic market, and was recently ranked by the 2011 Banking Survey as the 6th best overall bank of the 43 banks in the country.
DEG, member of KfW Bankengruppe, is one of the largest European development finance institutions for long-term project financing. For 50 years, DEG has been financing and structuring the investments of private companies in developing and transition countries.
DEG invests in profitable projects that contribute to sustainable development in all sectors of the economy, from agriculture to infrastructure and manufacturing to services with special emphasis on exported oriented and employment generating projects which are environment friendly.
DEG also focuses on investments in the financial sector in order to facilitate reliable access to capital. To date, DEG has worked together with more than 1,700 companies with financing commitments of more than EUR 13 Billion and boasts of 457 staff spread over 13 regional offices and supported by 60 KfW agencies worldwide.
PROPARCO (or Proparco) (Société de Promotion pour la Cooperation économique) is the Investment and Promotions company for Economic Cooperation. Created in 1977, Proparco is a Development Financial Institution, partly held by Agence Française de Développement (AFD) and private shareholders from the North and South.
Proparco’s mission is to foster private investment in emerging and developing countries which targets growth, sustainable development and reaching the Millennium Development Goals (MDGs). Proparco has a team of 150 people, 10 regional offices and is supported by 50 AFD Group agencies worldwide.
Hon.John Rwangombwa, Rwanda’s Minister of Finance and Economic Planning, said “This acquisition contributes to Rwanda’s continued path towards creating a strong, efficient and inclusive financial sector. The Government’s aim is to encourage all industry players to offer diversified services and products which tailor to all segments of Rwandan society.
In addition, we believe that the partnership with two reputable Development Financial Institutions – DEG and PROPARCO – will highly contribute to mobilizing long term financing for the economy.”
The new Board takes over under the continued leadership of Mr William Irwin, who has been the chairman of BCR since 2009. “We look forward to working with our new shareholders to grow BCR to its full potential.
BCR is well known in Rwanda and now being part of a Regional Banking Group will make it an even bigger player in the region enabling it to offer exclusive products to facilitate regional trade.”
Sanjeev Anand BCR’s Managing Director who has been at the helm of the Bank since 2009, further expressed “We are excited about this milestone in the history of BCR. Being a part of a larger, regional banking entity opens up so many more opportunities both for BCR and Rwanda as a whole.
In addition, having two reputable development finance institutions as major shareholders, will certainly improve the Bank’s visibility in the international markets. We are looking forward to working closely with I&M Bank and to being able to serve our customers much better and more conveniently on a local and regional front.”
I&M Bank Group prides itself and has been recognised for its passion to introduce innovative products and services that enhance customer convenience and their overall banking experience. I&M Bank was the first bank in East and Central Africa to be licenced by VISA for E-Commerce acquiring.
Likewise, I&M was the first bank to introduce a prepaid card that can be loaded using mobile payment systems. The I&M Group also operates in the insurance industry through GA Insurance Company.
“This is certainly a step in the right direction” says Mr Sarit S. Raja Shah, the Executive Director of I&M Bank “We are guided by our customers’ expansion in the region, and this acquisition is no different.
It further strengthens the position of I&M as a truly regional player able to offer seamless one – stop solutions to our customers who transact within the region.
We would like to take this opportunity to thank the National Bank of Rwanda for their support and guidance during this acquisition, and for welcoming us as investors into Rwanda. We look forward to find synergies within the Group that will contribute further to Rwanda’s economic growth”.
This operation illustrates I&M’s strong partnership with Development Finance Institutions. Laureen-Astrid Kouassi, Investment Officer in PROPARCO’s Banking and Capital Markets Department confirmed her institution’s commitment to the I&M Group:
“Proparco is proud to support its long dated partner in the expansion of its activities in Rwanda whose banking sector offers some significant opportunities for the I&M Group.
BCR enjoys a strong positioning in its domestic market; its sound recent financial and operating performances have moreover paved the way for a sustainable growth. The successful completion of this acquisition hence further strengthens I&M’s position as a key player in the EAC banking sector”.
“We are proud to support I&M Bank in this transaction, a partner distinguished by exceptional regional knowledge and a proven track record.
As one of the bank’s focus activities is the financing of small and medium-sized enterprises, the expansion to Rwanda will enable the transfer of I&M Bank’s expertise and range of banking solutions in this field, thus supporting the expansion of private enterprises structures and creating the basis for sustainable growth in Rwanda” said Peter Bereschka, Investment Manager at DEG.
The trade between Kenya, Tanzania and Rwanda has steadily been on the rise, especially supported by the East African Community Agreement. As Mr Arun S Mathur, the Chief Executive Officer of I&M Bank expressed “The acquisition will give the customers of BCR and I&M regional banking solutions and facilitate their expansion within the EAC.
The participation by PROPARCO & DEG in this acquisition also further highlights the confidence the DFIs have in I&M and in BCR.
I&M currently enjoys several credit lines, and we look forward to strengthening BCR’s products and service offerings and support more businesses within Rwanda. Our relation with BCR will certainly support our vision to be ‘…the first choice where customers want to do business’.”
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