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Charity Ruzvidzo Business Reporter
TROUBLED financial institution, AfrAsia Bank Limited (ABL) is courting local and international investors in a bid to raise $35 million to meet regulatory capital requirements.The bank’s corporate communications executive Sekai Chitemere told Business Chronicle on Friday that in the past few weeks, the group’s chief executive officer James Benoit was in the country to roll out a plan to restore confidence among their investors and depositors.

“We’re already in negotiations with several investors, but ABL intends to continue to hold a significant stake in its Zimbabwean operations. The group expects to raise $35 million to meet the regulatory capital requirements.

“As such, AfrAsia Zimbabwe Holdings Limited(AZHL) has embarked on a turn-around strategy involving key local and international investors to address the liquidity issues, namely through an equity raise and providing a Senior Secured Note (SSN) to avail immediate liquidity,” she said in a written response to questions from Business Chronicle.

Chitemere said the bank was receiving positive feedback from potential investors.

“Recently, the bank launched an Investor Information Memorandum outlining its strategies targeting local and international investors. So far, it has received an expression of interest for an equity raise from well-known private African equity firms, international investors and banks,” she said.

AZHL chief executive officer Lynn Mukonoweshuro said the bank has succeeded in implementing strategies resulting in a clean loan book.

“Despite the temporary setback and challenges we are going through, we’re receiving the support of all key stakeholders including the regulatory bodies and our staff. We’ve managed to put in place strategies resulting in a clean loan book and a substantial recovery action,” she said.

Of late the bank’s depositors in Bulawayo have failed to withdraw their cash a development that saw them spending nights to withdraw just $50 a day.

As of Friday last week, depositors were allowed to withdraw $20 as the bank continues to face liquidity constraints.

Some of the depositors queueing to withdraw their cash on Friday said the bank’s financial position was getting worse.

“The situation at this bank is not improving, rather it’s getting worse. We’re withdrawing $20 per person from the $50 they were giving us,” said one of depositors at the bank, Noel Dube.