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Kina Securities to acquire 15% stake in microfinance institution

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Kina Securities to acquire 15% stake in microfinance institution

Kina Securities Ltd., or Kina Bank, agreed to enter into a share subscription agreement with microfinance institution Nationwide Microbank Ltd.

Under the share subscription agreement, Kina Bank will subscribe for 2,239,148 new shares to be issued by Nationwide Microbank for a consideration of 2.6 million Papua New Guinea kina.

After the issue, Kina Bank will hold 15% stake in Nationwide Microbank. The acqusition will help Kina Bank expand financial inclusion services in Papua New Guinea, while Kina Bank will provide Nationwide Microbank's customers with access to ATMs, according to an Aug. 23 news release.

Kina Bank and Nationwide Microbank also plan to enter into a mutual referral agreement for small and medium enterprises. Kina Bank will refer micro and small enterprises to Nationwide Microbank, while Nationwide Microbank will refer SMEs who have lending requirement exceeding its limits to Kina Bank.

As of Aug. 22, US$1 was equivalent to 3.40 Papua New Guinea kina.