Banking

MAPUTO (Capital Markets in Africa) – Mozambique’s central bank kept its key rate at a record low, saying that while it estimates inflation will accelerate slightly, it won’t compromise the regulator’s objective of maintaining macroeconomic stability. The Monetary Policy Committee held the benchmark interbank rate, known by its Portuguese acronym MIMO and introduced in April 2017, at 14.25 percent, Banco de Mocambique said Thursday in an emailed statement. It retained the policy rate at 17.25…

NAIROBI (Capital Markets in Africa) – KCB Group Plc, Kenya’s biggest lender by assets, plans to acquire state-owned National Bank of Kenya Ltd. through a 10-for-one share swap. If approved, the deal will be the second banking tie-up offer in East Africa’s largest economy in less than five months after NIC Group Plc and Commercial Bank of Africa Ltd. proposed a merger. The consolidation is in line with the central bank’s aspirations for a stronger banking sector. Shares of NBK, as…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s central bank says it’s premature to claim victory in the war against inflation and sees price growth stabilizing at 4.5 percent only by the end of 2021. While inflation has been inside the central bank’s target band of 3 percent to 6 percent for two years and was at the midpoint of this range in March, it’s “too early to claim that inflation is already permanently lower,”…

LAGOS (Capital Markets in Africa) – Access Bank Plc, which obtained a $162.5 million loan last month to boost its capital and fund operations, will raise additional $87.5 million this year, its chief executive officer said. The fund will qualify as tier-two capital and will be needed to strengthen operations following merger with rival Diamond Bank Plc, CEO Herbert Wigwesaid Wednesday on an investor call in Lagos, Nigeria’s commercial hub. Access Bank acquired Diamond Bank last month in a deal…

ACCRA (Capital Markets in Africa) – Ecobank Ghana Ltd. is counting on an increase in deposits and rising use of its digital services to lower costs and help sustain profit growth after a knockout 2018 for earnings. The West African country’s second-largest lender is reaping the rewards of what the International Monetary Fund predicts will be the world’s fastest expanding economy this year. Lower interest rates are set to spur lending, while a regulatory cleanup that weeded out…

LONDON (Capital Markets in Africa) – The activist investor challenging Barclays Plc’s management responded to last week’s rebuff with an olive branch, saying that “mutual goodwill” could deliver a major increase in value — while repeating his opposition to the lender’s plans for its investment bank. Edward Bramson, whose Sherborne Investors vehicle holds a 5.5 percent interest in Barclays stock, said in a letter published Monday that “we have consistently assisted boards that were initially reluctant…

CAIRO (Capital Markets in Africa) – Egypt is gearing up to issue its first Panda, Samurai, sukuk and green bonds in the fiscal year starting in July as it attempts to cut borrowing costs by diversifying funding sources, Finance Minister Mohamed Maait said. The country raised $6.2 billion from dollar and euro bond markets in early 2019, but postponed plans to issue debt denominated in Japanese yen and Chinese yuan, sukuk and green bonds during the current fiscal year ending June…