23 May 2014 07:44
Atlas Mara to acquire the Government of Rwanda's stake in BRD
The Board of Atlas Mara Co-Nvest Limited ("Atlas Mara" or "the Company") is pleased to announce that subject to the satisfaction of certain regulatory and other conditions, it has agreed to acquire the Government of Rwanda's 77% shareholding in the commercial arm of the Development Bank of Rwanda ("BRD"). This follows the announcement in April 2014 that the Company and Government had signed a Memorandum of Understanding to privatise BRD.
This is a significant step in Atlas Mara's objective to become a leading financial services group in sub-Saharan Africa. When completed, the transaction will broaden Atlas Mara's footprint in the East African Community. BRD has served at the forefront of economic development in Rwanda for 46 years. The transaction will also help support Rwanda's emergence as a financial services hub in the region.
Contact details
StockWell Communications, +44 (0)20 7240 2486
Anthony Silverman
Robert Morgan
Sard Verbinnen & Co, +1 (212) 687 8080
David Reno
Margaret Popper
Notes to Editors
About Atlas Mara
Atlas Mara was formed by Bob Diamond, Founder and CEO of Atlas Merchant Capital LLC and Ashish J Thakkar, Founder of Mara Group Holdings Limited, and listed on the main market of the London Stock Exchange in December 2013.
The stated strategy of the Company is that following an acquisition, it will operate the acquired business and implement an operating strategy with a view to generating value for its shareholders through operational improvements as well as potentially through additional complementary acquisitions.
The Directors believe that there are significant gaps in the market today including the need for capital. The retreat of European financial institutions to their home territories due to the sovereign debt crisis and the Basel III regulatory framework has restricted the flow of capital at a critical time for growth in Africa. This situation presents opportunities for Atlas Mara to create a financial institution that provides leadership, liquidity, access to investors, product innovation, and technology to support economic growth and strengthen financial systems in Africa.
About BRD
The Development Bank of Rwanda is a Public Limited Liability Company created on August 5, 1967. BRD is a development finance institution dedicated to becoming "the financier of Rwanda's development". BRD's vision is, "To be the leader of productive investment and be the most profitable Bank at the service of poverty reduction". BRD provides long-term financing to the private sector and offers a range of products including loans, leasing, mortgage financing, and trade finance.