Diamond Trust Bank Tanzania (DTBT) has boosted its capital base by 12.4bn/- following the recently completed rights issue which the banks says it was fully subscribed.
A statement issued by the bank on Monday said Abdul Samji, DTB’s Group Chairman, described the rights issue as a major success.
It added that according to him, the results of the rights issue are reflective of the strong support, loyalty and confidence DTB enjoys from its shareholders.
The bank had offered some 3.87 million rights to the shareholders at a discounted price of 3,200/- per new share, it said, adding that a number of its shareholders had not only taken up their rights issue, but the bank‘s core capital would increase to 48bn/-.
“With these new funds we will be able to continue with our plans for investment in branch expansion, technology and new products and explore additional opportunities to further strengthen our presence in Tanzania, a key market for the DTB Group,” Samji said.
DTB Tanzania currently has 16 branches across the country, with plans to double the footprint over the medium term, the statement said.
The significant expansion drive is in the line with Diamond Trust Bank group’s long-term strategy, dubbed as vision 2020, which is aimed at upscaling its operations throughout East Africa by continuing to rapidly expand its presence in major commercial sectors across the four markets of Tanzania, Kenya, Uganda and Burundi, it said.
DTB Tanzania is an affiliate of the Aga Khan Fund for Economic Development (AKFED), the economic development arm of the Aga Khan development Network.
The Bank’s other key shareholder is Diamond Trust Bank Kenya limited, which is also an affiliate of AKFED, it said.