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Zambia central bank hikes key rate; Kenyan banks post Q1 results

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Zambia central bank hikes key rate; Kenyan banks post Q1 results

* London Stock Exchange Group PLC officials are seeking to increase the bourse's African listings and strike partnerships with several African exchanges, including those in Kenya and Nigeria, for dual listings, Bloomberg News reported, citing Ibukun Adebayo, the LSE's director of emerging markets and international markets.

* U.S. private equity firm Eaton Partners LLC appointed Steve Eaton head of Europe, the Middle East and Africa.

GULF COOPERATION COUNCIL

* Mashreqbank PSC raised $175 million through a reopening of a $500 million bond the Dubai-based lender issued in February, Reuters reported, citing a document issued by one of the banks leading the deal.

* The Financial Markets Tribunal has affirmed a decision by the Dubai Financial Services Authority to withdraw Royal Shield Ltd.'s license to carry on financial services in or from the Dubai International Financial Centre, as the firm is no longer fit and proper to hold the financial services license. The firm disputed the authority's original decision and referred it to the tribunal for review.

* UAE Insurance Authority Chairman Bin Saeed al-Mansouri issued a resolution on regulations for the reinsurance sector, including the licensing and registration of reinsurance firms, Middle East Insurance Review reported.

* Shareholders of Walaa Cooperative Insurance Co. greenlighted a proposed capital increase to 528 million Saudi Arabian riyals from 440 million riyals through the issuance of bonus shares, Argaam reported.

* Kuwait's Ministry of Commerce and Industry is finalizing a draft law that would regulate the capital that insurance companies should maintain in the country depending on the type of insurance it provides, Al-Qabas reported. Insurers that provide marine and aerial insurance should maintain 15% the total insurance premiums generated in the previous year, while companies that provide other types of insurance should maintain not less than 30% the insurance premiums of the insurance generated in the previous year. Forty percent of the maintained money should be deposited in local banks, while 60% can be invested in local bonds, shares and real estates.

REST OF MIDDLE EAST AND NORTH AFRICA

* An Israeli court backed the Israel Tax Authority's interpretation of bitcoin as an asset, rather than a currency, effectively making profits on its sale liable to capital gains tax, Globes reported.

* The general assembly of Misr Insurance Holding Co. approved the appointment of Moamen Mokhtar as chairman of the board and managing director of Misr Insurance Co., and the renewal of the term of Ahmed Abdulaiziz as chairman of the board and managing director of Misr Life Insurance Co., Al-Masry Al-Youm reported.

* An Egyptian central bank official denied reports that a proposed banking law will impose term limits on state-owned banks' board members, Daily News Egypt wrote.

* A U.S. appeals court revived a case against BNP Paribas SA filed in 2016 by alleged victims of a genocidal regime in Sudan who sought to hold the French banking group liable for its role as the regime's main bank, Reuters reported.

* The Tunisian parliament has approved the issuance of an $800 million eurobond following a new hearing by the country's finance minister, Agence Ecofin wrote. The operation was rejected by the Parliamentary Committee on Finance earlier this month, which called for the government to limit the size of the operation to $500 million to avoid a significant increase in foreign debt.

EAST AND WEST AFRICA

* Kenyan bank KCB Group PLC reported first-quarter unaudited group profit after tax and exceptional items of 5.77 billion shillings, up from 5.18 billion shillings a year ago.

* Co-operative Bank of Kenya Ltd. reported unaudited first-quarter group profit after tax and exceptional items of 3.60 billion shillings, up from 3.45 billion shillings a year earlier.

* Diamond Trust Bank Kenya Ltd. said it booked a bargain purchase gain of 59.8 million shillings from its acquisition of Habib Bank Ltd's branches and assets in August 2017, Business Daily Africa reported.

* Johnstone Oltetia, interim CEO of the newly established Kenya Mortgage Refinance Co, said the company is looking to raise roughly 5 billion shillings on the capital markets in the next year or two after it draws down funding from the World Bank and the African Development Bank, Reuters reported.

* Kenya's Employment and Labour Relations Court has stopped African Trade Insurance Agency from firing its CEO, George Oduori Otieno, before his term ends in 2021, Daily Nation reported.

* Kenya's Retirement Benefits Authority has granted Cytonn Asset Managers Ltd two licenses to offer personal retirement benefit schemes with a monthly payment platform, Business Daily Africa reported.

* A Kenyan court ruled that Mohammed Zafrullah Khan, former chairman of collapsed lender Chase Bank (Kenya) Ltd., granted loans of more than 1 billion shillings to companies linked to him, without securities, Business Daily Africa reported. Khan, along with several others, is charged with conspiring to defraud the lender.

* First Atlantic Bank Ltd.'s management has notified Ghana's labor department that it is in talks with the representative of several workers that will be affected by the redundancy exercise at the lender over concerns related to the redundancy package employees will receive, Citi Business News reported.

* Bank of Ghana Governor Ernest Addison said only 731 million cedi have been recovered to date out of 10.1 billion cedi of loans taken over by the receivers of nine failed banks, with the "painstakingly slow" receivership process further delayed by loan defaulters and shareholders engaging in frivolous legal cases, Citi Business News wrote.

* Nigerian central bank Governor Godwin Emefiele said the regulator will soon roll out a comprehensive framework that will curb banks' appetite for government securities and boost credit flow to the private sector, Nigeria's Business Day reported.

* Banque de l'Habitat du Sénégal launched diaspora bonds in mid-May, the first to be issued in French-speaking West Africa, Jeune Afrique reported. The aim of the operation, which runs until June 17, is to raise 20 billion CFA francs, of which 60% is expected to come from residents outside of the West African Monetary and Economic Union and the rest from the internal market and other types of subscribers. Diaspora bonds, which are marketed only to migrants, were first launched in Africa more than ten years ago.

CENTRAL AND SOUTHERN AFRICA

* The U.S. Embassy in Pretoria urged the South African government to extradite former Mozambican Finance Minister Manuel Chang to the U.S. and reverse a decision by the country's justice ministry to extradite him to Mozambique. The embassy said Chang must stand trial in the U.S. over allegations that he carried out a $2 billion fraud and money-laundering scheme that defrauded U.S. investors and took advantage of the U.S. financial system.

* South Africa-based African Bank Ltd. has launched a zero monthly fee account, called MyWORLD, in a bid to challenge the offerings of rivals TymeBank, Capitec Bank Holdings Ltd. and Nedbank Ltd., Business Day reported.

* The Bank of Zambia raised the policy rate by 50 basis points to 10.25% in a bid to counter inflationary pressure and support macroeconomic stability. The benchmark rate increase is the first since November 2015, Bloomberg News noted.

* Fitch Ratings affirmed Development Bank of Namibia's long- and short-term foreign- and local-currency issuer default ratings at BB+/B, with a negative outlook on the long-term ratings, among other ratings actions.

* Banco Nacional de Angola said 88% of the country's $16 billion net international reserves are already under the management of the central bank, Jornal de Angola reported. In 2018 the government started the portfolio restructuring after it was verified that a considerable part of the reserves were invested in assets managed by external entities.

* The Republic of the Congo's bid for a bailout from the IMF is at "major risk" of being rejected by the fund, Reuters reported, citing a letter addressed to Congolese Prime Minister Clément Mouamba from advisers to the government.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: ICBC gets nod to set up unit; 5 face charges for Bangladesh Bank heist

Europe: Norway takes Metro Bank stake; UBS nears Italy settlement; SIX Group fine upheld

Latin America: 2 Panama banks in proposed merger; Caixa to restructure client debts

North America: JPMorgan exec pay support dips; Morgan Stanley trims in London; 2 RIAs acquired

Global Insurance: Potential MetLife/Generali deal; Fairfax Financial CFO dies; cat bonds pricing

Erin Tanchico, Henni Abdelghani, Sophie Davies and Mariana Aldano contributed to this report.

The Daily Dose Middle East and Africa has an editorial deadline of 5 a.m. London time. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.