Dutch Company To Buy Equity In Rural Bank

A Dutch company, Goodwell West Africa Microfinance Company Limited (GWAMC), is acquiring equity shares valued at us$ 1 million in Nwabiagya Rural Bank with the intention of holding the shares for a period of sixty months.

So far, GWAMC has paid US$700,000 to the bank, making it possible for them to secure 2,100,000 shares , which translates into 14.03 per cent shares in the rual bank.

According to the Chairman of the Board of Directors of Nwabiagya Rural Bank, Nana Owusu Sarfo Anwona II, GWAMC is expected to pay the balance of “US$300,000 in due course, which would also attract another 900,000 ordinary shares to the investors”

The foreign investors will be holding a total of 18.9 per cent equity shares from Nwabiagya Rural Bank after paying the US 1 million, a situation that will push the number of shares that the bank has sold to shareholders to 15,859,997.

Addressing shareholders of the bank during the 23rd Annual General Meeting (AGM) of the bank at Barekese, Nana Sarfo Anwona noted, “ The Board of Nwabiagya has put in place the necessary mechanism to ensure a smooth exit of our investors as and when the time is due”.

He pointed out that the 60 months’ period that GWAMC would hold the 3,000,000 shares of Nwabiagya Rural Bank started from July 18,2011, when the investors paid the US$,700,000. He said the period would end on July 17, 2016.

He pointed out that after paying the balance of US$300,000, the company would be “holding a total of 3,000,000 shares”.

Nana Owusu Anwona also announced that as part of their investment, the GWAMC has requested that the Board of Nwabiagya should not only expand its branches and procure additional cash and teller machines, but should also train and expand the bank’s micro-financing portfolio, support the expansion of their Information and Communication Technology, purchase additional vehicles to enhance the expansion of their operations and initiate policies and programmes that would make it possible for them to expand their marketing department.

On their financial operations last year, he said Nwabiagya Rural Bank succeeded in putting up a splendid and marvellous performance, making it possible for them to raise the major aggregates in the areas of deposits, total assets, paid-up capital, as well as loan advances and profit margins.

On deposits, Nana Owusu Anwona said the bank generated a total of GH¢21,301,423 in 2010 as against GH¢14,851,617 in 2009.

He said total investments also rose from GH¢6,640,312 in 2009 to GH¢10,900,100 in 2010, while total assets also jumped from GH¢19,739,621 in 2009 to GH¢26,770,023 last year.

On the bank’s share capital, he said it rose from GH¢341,315, in 2009 to GH¢506,621 last year, with loans granted to enhance the business of its numerous clients also rising from GH¢9,159,209 in 2009 to GH¢11,030,407 in 2010.

He said the profit margins of the bank also rose from GH¢1,002,098 in 2009 to GH¢1,219,407 last year.

He said the bank also committed itself to its social responsibilities by spending a total of GH¢46,748.30 in the areas of education, scholarships to brilliant needy students, infrastructure development, promotion of health, as well as portable water and rural electrification among others.