Moza Banco shareholders announce capital increase

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Moza Banco shareholders announce capital increase

1:03 CAT | 07 Dec 2017

File photo / Moza chairman of the board Joao Figueiredo

The joint shareholders of Moza Banco announced a capital increase of 3.5 billion meticais (EUR 50 million) in Maputo today, lifting the bank’s share capital to 13.8 billion meticais (EUR 195 million).

The increase was approved unanimously during an extraordinary general meeting of the bank on Wednesday, a statement released today details.

“This capital increase aims to ensure the implementation of the 2017-2021 Strategic Plan and will enable Moza Banco to strengthen its strategic and commercial positioning,” the document explains.

The institution, rescued by the state in 2016 as a result of poor financial indicators, intends to act “in accordance with the best international practices of prudence and risk management,” chairman of the Board of Directors João Figueiredo writes in the statement.

Figueiredo describes Moza as “one of the largest banks [in Mozambique]” in terms of its own funds, and “the financial institution with the largest share capital” currently operating in the country.

Before the intervention, the bank was the fourth largest in the country by assets, deposits, loans and advances.

The capital increase announced today leaves the Bank of Mozambique pension fund, Kuhanha, in its dominant position with 84.6 percent of the shares; Mozambique Capital holds 7.845 percent, the Portuguese holding company Novo Banco Africa has 7.538 percent and the shareholder António Matos has one share.

The Bank of Mozambique announced the sale of Moza Banco to Kuhanha after having intervened in the bank in September of last year, its “financial and prudential situation” having degraded unsustainably.

The decision of the central bank to sell Moza Banco to its own pension fund was considered illegal by the Mozambique Central Commission of Public Ethics (CCEP), but central bank governor Rogério Zandamela said at the time that he considered the outcome of the intervention in Moza “a source of great pride”.

Source: Lusa