Kibo Fund II, a $63m regional growth fund managed by Kibo Capital Partners, has invested in I&M Bank Rwanda, the oldest and one of the most profitable banks in Rwanda. 

Financial details of the transaction were not disclosed.

Kevin Rodrigues, Principal of Kibo, said: “Our investment in I&M Rwanda (IMR) builds on a long relationship between Kibo and with I&M Bank.” 

“Investing in IMR allows Kibo to support a market leading bank expand further in one of the Sub-Saharan Africa’s dynamic economies,” he said.

“As the first private investment in public equity (PIPE) transaction in our current fund, Kibo played a cornerstone role as the main international institutional investor in IMR’s successful Initial Public Offering on the Rwanda Stock Exchange,” he added.

The bank was incorporated in 1963 as the first commercial bank in Rwanda as Banque Commerciale du Rwanda (BCR). 

In December 2004, BCR was privatised and acquired by Actis a pan-emerging markets private equity firm and the Government of Rwanda after recapitalization of the company’s equity, giving Actis 80% shareholding. 

In July 2012, an 80% equity buy out of Actis by a consortium comprising of I&M bank, a Kenyan based Bank, and two  European developmental financial institutions, DEG and Proparco, led to a re-brand of the company to I&M Bank (Rwanda).

The government shares in the oldest lender in the country were floated last month as part of the strategy to leave business entities in private hands.

The government has announced that the IPO for its 19.81% stake in I&M Bank Rwanda, was oversubscribed by 209%.

The proceeds from the sale are set to raise funds for the initial equity towards the development of Bugesera International Airport.

According to the Ministry of Finance and Economic Planning, 60% of the 99,030,400 went to Rwandan and East African investors, while 40% was allotted to foreign investors.

According to the Minister of Finance and Economic Planning, Claver Gatete, the oversubscription reflects confidence in the Rwandan economy and the bank in particular.

“Oversubscription of the shares also gives credibility to the Government of Rwanda’s privatization programme,” said the Minister.

“Having successfully carried out allotment of the shares to the successful applicants, we are confident that the listing of the shares on Rwanda Stock Exchange will facilitate the growth of our capital markets,” he added.

Kibo Capital Partners is a manager of regional private equity funds, with offices in Mauritius and Kenya. 

It has raised two funds since 2008 with combined funds under management of over $100m.