Atlas Mara Limited Completes Sale of Its 62.06% Stake In Banque Populaire du Rwanda Plc to KCB Group Plc(KCB)

KCB Bank Rwanda

Kigali –KCB Group Plc (“KCB”) hereby provides an update on the strategic transaction for the acquisition of a majority stake in Banque Populaire Du Rwanda Plc (“BPR”).

As previously announced in November 2020, Atlas Mara and KCB signed a definitive agreement regarding the acquisition of 62.06% of the issued share capital of BPR by KCB (the “Transaction”) which will be followed by a subsequent merger with KCB’s wholly owned subsidiary operating in Rwanda, KCB Bank Rwanda Plc. KCB also on February 26, 2021, acquired 14.61% of the issued share capital of BPR held by Arise B.V.

We are pleased to announce that having successfully secured the necessary regulatory approvals and consents, and fulfilled all other agreed closing conditions, both transactions were completed, with KCB having assumed majority ownership and control for the operations of BPR effective on August 25, 2021.

Commenting on the transactions, KCB Group CEO and MD Joshua Oigara said: “We are delighted to complete this acquisition of BPR, a strong retail and SME bank with the largest branch network in the sector and a long history spanning over 45 years in the country. This transaction will see the combined bank becoming the 2nd largest bank in the industry.”

The plan, said Mr Oigara, is to eventually create one banking entity in Rwanda to be named BPR Bank by merging KCB Bank Rwanda and BPR.

The merger will provide current KCB Rwanda customers with access to a larger network of branches and agents across the country, while BPR customers will benefit from best-in-class digital capability, transactional banking solutions, trade finance expertise and international banking offering from KCB.

“This will increase our scale and improve our operating leverage by enabling us to deliver our existing retail and wholesale offerings to a wider base of customers in Rwanda while positioning the bank for sustainable growth in the long-term,” said Mr Oigara.

BPR Managing Director Maurice Toroitich said: “We are delighted to have KCB as a shareholder and partner as we continue to execute our growth strategy and very delighted to have been part of this milestone transaction in the Rwanda banking sector. Through this transaction, our customers will benefit from being part of a large banking group in East Africa and will benefit from KCB’s digital banking capabilities, complementary branch and agent network, innovative product offering across retail, SME and corporate as well as leveraging the broader KCB regional footprint.”

The combined entity is expected to have a solid capacity to play a greater role in Rwanda’s economic growth, riding on a stronger balance sheet to support customers while leveraging the enhanced distribution network to deepen financial inclusion and provide lending and trade finance solutions to entrepreneurs and SMEs in Rwanda.

“I want to reassure our clients that the safety of their accounts, the stability of banking operations and high-quality customer service will remain the top priorities for the combined institution during the transition. We are grateful for the trust of our customers, who can look forward to new products and services as the bank pursues sustainable growth,’ added Mr. Toroitich.

This transaction will see BPR’s strong retail, and SME loan capability and branch network leverage KCB Rwanda’s best in class digital platform and product suite to create a platform for further growth and the facilitation of financial inclusion for the unbanked in the country. Corporate customers can expect to benefit from KCB strengths in transactional banking, trade finance, treasury, international payments, and loans through the wider distribution network of the enlarged bank and KCB’s presence in countries across the East African region.

About KCB Group PLC

KCB Group Plc is East Africa’s largest commercial Bank that was established in 1896 in Kenya. Over the years, the Bank has grown and spread its wings into Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia (Rep). Further to the banking businesses in these markets, KCB Group owns National Bank of Kenya, a Kenyan lender. Today KCB has the largest branch network in the region with 354 branches, 1,103 ATMs and over 26,394 merchants and agents offering banking services on a 24/7 basis in East Africa. Additionally, KCB Group owns KCB Insurance Agency, KCB Capital Limited, KCB Foundation  and Kencom House Limited as non-banking businesses. This is complemented by mobile banking and internet banking services with a 24hour contact center services for our customers to get in touch with the Bank. KCB has a wide network of correspondent relationships totalling over 200 banks across the globe and our customers are assured of a seamless facilitation of their international trade requirements wherever they are. For further information, please contact Judith Sidi Odhiambo-KCB Group Head of Corporate Affairs; email: [email protected]

About BPR Bank

The BPR journey started in 1975 as a community based savings and credit scheme and subsequently transformed to become a fully-fledged commercial bank in 2008 with core  focus on retail and SMEs.    In January 2016, Atlas Mara acquired a stake in BPR, which was subsequently merged with Atlas Mara’s existing operation, BRD Commercial Bank which resulted in the merged entity becoming the second largest bank with operations cross retail, SME and Corporate banking. BPR currently operates through an extensive network of 137 branches, 51 ATMs and 350 bank agents across 5 provinces nationwide.




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