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HF set to issue bonus shares

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HF Group Shareholders have unanimously approved the issuance of bonus shares, aimed at enhancing its share capital. The decision, which was ratified during the group’s 52nd Annual General Meeting held Friday April 27th at KICC, is subject to regulatory approvals.

If granted, HF Group, which currently has 350 million paid up shares will issue additional 35 million shares at the price of Ksh5 per share that will raise the total fully paid-up share capital to Ksh1.922 billion.  HF Group Chairman Mr Steve Mainda said following the approval, it will issue one new share for every 10 shares held by existing shareholders to raise Ksh175 million to capitalize the company.

“Shareholders for approving the bonus share shows the level of confidence they have in the future of HF Group,” he said.

HF Group recorded a profit before tax of Ksh311 million for the period ending 31 December 2017, marking a 77 per cent decline in profits compared to 2016, which was attributed to the unfavourable economic and fiscal environment on the back of protracted electioneering.

READ ALSO: KCB SHAREHOLDERS APPROVE SH9.2 BILLION DIVIDEND

Based on the market outlook, Mr Mainda said the group has reviewed its business strategy and shifted its focus to growth through leveraging digital channels. It has also up-scaled full service banking proposition targeting SMEs and retail customers, refocused on service delivery and customer experience, which has seen the introduction of a 24-hour call Centre.

HF has introduced a new property development-operating model to reduce reliance on bank debt for project finance and end-buyer mortgage finance.

“The Group’s focus is on enhancing working capital access to SME customers, improving non-interest income and enhancing accessibility and convenience for its customers through investment in alternative channels including MasterCard, internet banking and a mobile banking application,” said Mr Frank Ireri, HF Group Managing Director.

In 2017,  Mr Ireri said the group attracted financing of approximately Ksh5 billion from European Investment Bank and Ghana International Bank. “In March 2018, the Arab Bank for Economic Development in Africa (Badea) extend a Sh1.5 billion line of credit to HFC, the banking and property finance subsidiary of HF Group,” Mr Ireri said.

This this will play a key role in the growth of HFC’s banking and specifically in financing the working capital and expansion of the bank’s growing SME customer base.

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BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
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