FDH Financial Holdings Ltd. said April 3 that it injected 6.6 billion Malawian kwacha into unit FDH Bank Ltd. on March 31, completing the first phase of a recapitalization of the bank.
Recapitalizing FDH Bank is part of the agreement that FDH Financial signed with the Malawian government as part of the acquisition of Malawi Savings Bank Ltd. and its merger with FDH Bank. Of the 6.6 billion kwacha, 5.5 billion kwacha represented a direct equity injection and 1.1 billion kwacha went toward FDH Financial's acquisition of FDH Money Bureau Ltd. from FDH Bank.
In the second and final phase of recapitalization, a further 5 billion kwacha will be injected into the bank May 31, ahead of a June 30 deadline set by the Registrar of Financial Institutions in Malawi.
As of April 3, US$1 was equivalent to 725.00 Malawian kwacha.