Bank of Kigali (BK) group on Thursday registered a new advisory and investment services on the Rwanda bourse.
The product; BK Capital is a joint venture with Swan Group – a leading financial solution provider in Mauritius.
BK Capital was first introduced to the market in 2013 as BK Securities Limited, offering only securities brokerage licensed by the Capital Markets Authority.
However, for six years, its portfolio has expanded to offer investment and wealth management, corporate finance and advisory services, brokering of capital markets instruments – bonds and equities, pension fund’s administration, among others.
With a champagne toss proposed by Minister of Finance Dr. Uzziel Ndagijimana, BK Capital was launched at a colourful event held at Kigali Marriot Hotel, becoming BK Group’s 4th subsidiary with listed shares on the Rwanda Stock Exchange (RSE).
BK Group Plc is Rwanda’s biggest financial Institution in terms of assets.
SWAN offers corporate advisory services, asset management services and stock-broking services, with a total asset under management equivalent to $1.4billion and presents extensive expertise in the fund management business in Mauritius with global outreach.
“We have been growing over time and entering the market with a Swan deal as a partner, makes BK competitive in skills to improve what we’ve been doing with more experience in services like corporate finance and advisory services, fund management, which are lacking,” said Carine Umutoni, the Managing Director of BK Capital.
Umutoni said that the venture is also looking at tapping into the local market to increase local private sector involvement in capital markets, which has been a result of lack of financial and fund management skills despite players having money to invest.
Though details of Swan deal were not made public, officials at the company told the press that there are many products to be unveiled soon which will also come with opening opportunities for ventures in the local market.
In the deal, however, Swan will provide technical assistance and expertise in running the venture, thus making BK competitive among other already capital and securities services, which are mostly from the region.
“We find BK’s track record of financial management to be attractive and open, thus Swan will provide expertise that is lacking in the capital venture market but also launch investment products for Rwandans who may be looking for investment opportunities in and across Africa and internationally,” said Louis Rivalland, Group Chief Executive of SWAN.
When BK went public in 2011, its IPO generated Rwf37.5 billion. Last year, the bank issued 200 million new shares on the local bourse to raise Rwf60 billion to finance its expansion strategy of which it managed to cross-list its shares on the Nairobi Stock Exchange.
On the other hand, RSE CEO Pierre Celestin Rwabukumba said that BK capital becoming the newest entrant on the capital market is an opportunity to grow the venture capital and add value to the already growing market.
Since 2008, when the capital and stock markets were introduced in Rwanda, at least more than Rwf760billions has passed and exchanged hands through the local bourse, with bonds offers amounting to over Rwf300billion and IPOs at Rwf152billion among others.
“We need to mobilize more people to know that this is a lot of money and it is benefiting the economy and those investing in the markets,” Rwabukumba said.
For BK Group Chairman, Marc Holtzman the bank’s track record is a pointer to the country’s vision and what Rwanda needs is to create more transformational and impactful investments of which BK capital will serve as catalyst to bring in more foreign investments.
“Rwanda’s economic landscape holds so much untapped potential, so we’ve aligned our strategy to capitalize on it. Our priority is expanding our financial services portfolio to make our brand into a One-Stop Center under which those services are available to customers,” Holtzman said.
The Minister of Finance Dr. Uzziel Ndagijimana also stated that BK capital venture will enhance government’s plans to make Kigali an international finance center and implement the seven year national strategy for transformation 2017-2024.
BK Group Plc has officially unveiled a fourth subsidiary company, BK Capital Ltd that offers advisory and investment services.
BK Capital was first introduced to the market in 2013 as BK Securities Limited, a security brokerage licensed by the Capital Markets Authority. Its portfolio has expanded to offer the following services: Investment & Wealth Management, Corporate Finance & Advisory services, Brokering of capital markets instruments – bonds & equities, Pension Fund’s administration.
Commenting on the launch, BK Group Plc Chairman, Marc Holtzman said that Rwanda’s economic landscape holds so much untapped potential thus BK has aligned strategy to capitalize on it.
“Our priority is expanding our financial services portfolio to make our brand into a One-Stop Center under which those services are available to customers. The country envisions to have more robust budget. We are proudly taking a lead,” added Holtzman.
The BK Capital Managing Director Carine Mutoni explained that the new strategies and contributions of BK Capital will enhance investment landscape in Rwanda. “With the support of different stakeholders, we have aligned our strategy to be the leading investment and wealth manager, financial advisor and capital market intermediaries in Rwanda and beyond by offering diverse and tailor-made financial solutions to businesses and the retail market at large.”
She commended the pioneering efforts of various institutions and partners that managed to foster a conducive business environment that attracted more market players to use capital market and creating more liberalized investment opportunities. “We applaud efforts of Capital Market Authority for nurturing wealth and facilitating an orderly, fair, transparent and efficient capital market.
“We also commend National Bank Rwanda for ensuring a sound and stable financial system, the Rwanda Development Board for fast-tracking economic development in Rwanda that enables private sector growth and the Rwanda Stock Exchange for providing a platform for promotion of savings and raising funds for long term investment in Rwanda.”
For technical and strategic support,BK Capital Ltd has ventured into a partnership with Swan Group, a leading financial solution provider in Mauritius. The non insurance cluster of Swan, licensed by the Financial Services Commission of Mauritius, offers corporate advisory services, asset management services and stockbroking services. It has a total asset under its management equivalent to USD 1.4 billion and presents extensive expertise in the fund management business in Mauritius with global outreach.
The CEO of SWAN Group Mauritius, Louis Rivalland said Rwanda continues to be a role model on the continent, making it the preferred destination for financial investment and young agile economic opportunities.
“We are therefore partnering with an institution that shares our mission, values and contributing to the story of Rwandan investment while reinforcing our networks to seek more ventures. BK Capital has an acute sense of innovation and strong characteristics,” added Rivalland.
The launch was graced by the Minister of Finance and Economic Planning, Dr. Uzziel Ndayijimana who observed that the correlation of the new government financial sector reforms and economic implementation are meant to support the financial sector including banking, insurance and micro finance and capital markets, policies that will fit very well in the new innovations of BK Capital making Kigali an international finance center.”
BK Capital joins three other BK subsidiaries including: Bank of Kigali Plc which provides general corporate and retail banking services, BK TecHouse’s whose task is to drive digital innovation through providing connectivity solutions and software & analytics products while BK General Insurance offers insurance packages including motor, fire, transport and money insurance among others.
Bank of Kigali was among the very first banks opened in Rwanda. It was incorporated in 1966 and started operations a year later.
In June 2011, the group listed on Rwanda Stock Exchange and later cross-listed on the Nairobi Securities Exchange (NSE) in November 2018, the move expected to increase the group’s liquidity and enable it to raise adequate capital.
The cross-listing came after BK Group had floated 222.22 million new shares through a Rights Issue.
BK Launches Fourth Subsidiary BK Capital Ltd
Bank of Kigali has officially started providing investment and advisory services through its newly launched subsidiary – BK Capital Ltd.
“Our priority is expanding our financial services portfolio to make our brand into a One-Stop Center under which those services are available to customers,” said Marc Holtzman the BK Group Plc Chairman.
BK Capital Ltd publicly launched on Thursday, becomes the fourth subsidiary under the group also composed of Bank of Kigali Plc, BK TecHouse and BK General Insurance.
“I’m so excited with the launch of BK Capital as it’s going to serve as a catalyst for large investors from all over the world to connect with Africa; led by Rwanda at the forefront of this continents’ ever-bright future,”
According to Holtzman, Rwanda’s economic landscape holds so much untapped potential, so the group is focused on a strategy to capitalize on it.
In 2013, BK Capital was first introduced to the market as BK Securities Limited a security brokerage licensed by the Capital Markets Authority.
Over the past years, its portfolio has expanded and now provides; Investment & Wealth Management, Corporate Finance & Advisory services, Brokering of capital markets instruments – bonds & equities, Pension Fund’s administration.
BK Capital ltd will be more stable on the market through a partnership with Mauritius’ Swan Group.
The non-insurance cluster of Swan has a total asset under management equivalent to $1.4Billion and presents extensive expertise in fund management business in Mauritius with global outreach.
“We are opening a new chapter in the history of both our organizations, I’m confident that together we have the ability to open new ventures within and beyond Africa,” said Louis Rivalland – Group CEO of SWAN.