Equity, DRC Subsidiaries get Regulatory Approval to Merge

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Equity Group has received regulatory approval to merge with Commerciale Du Congo (BCDC) from the Central Bank of Congo.

The Kenyan lender will now proceed to merge BCDC with Equity Bank Congo (EBC), which it bought from ProCredit Bank about five years ago.

According to Kenya’s Business Daily, the combined outfit will become Equity Banque Commercial du Congo (Equity BCDC) and comes after the lender completed the acquisition of 66.53 percent stake in BCDC last August for $95 million (Sh10.37 billion).

James Mwangi Equity Group chief executive said the merged outfit will have a single obligator limit (the maximum amount a bank is allowed to lend a single borrower in relation to the total shareholders’ fund) of sh4.36 billion ($40 million).

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“This will enable our customers in DRC to access higher credit limits to grow and expand their business ventures,” said Mr Mwangi.

“Our customer will access with ease the advanced digital banking, and merchant banking services with a suite of payment cards from international card associations.”

Equity holds 86.6% shareholding in EBC and the merger will see its stake in Equity BCDC become 77.5%. The other stake is held by International Finance Corporation, DRC government and minority shareholders.

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