Consolidated Bank of Kenya Ltd.'s shareholders approved a plan to allocate 175 million newly created preference shares — worth 3.5 billion Kenyan shillings — to a yet-to-be-identified investor, Business Daily Africa reported Dec. 5.
The board will have five years to exercise the right to allot the new shares, with the shareholders deciding on any extensions, according to the report. The lender will begin searching for a suitable investor immediately.
The plan aims to bolster the lender's insufficient capital base, which had led to its breaching at least three regulatory requirements over the past four years, the report said.
As of Dec. 5, US$1 was equivalent to 102.70 Kenyan shillings.